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Tag: MAP Policy
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The Brand Commerce Pro’s Guide to MAP Policy
We talk a lot about pricing at PriceSpider. But of course, that’s probably no surprise—it’s literally in our name. And it’s also an increasingly relevant topic for brands. As ecommerce continues to dominate the retail landscape, it’s becoming more important for brands to protect their value and ensure fair competition through pricing policies. A key component of this is the Minimum Advertised Price (MAP), which establishes the lowest price at which a product can be advertised. MAP policies help prevent price undercutting and maintain healthy profit margins for brands, but implementing them can be a challenging process. In this article,…
What Is a Product Mix Pricing Strategy?
In the classic 90s cartoon Captain Planet and the Planeteers, five ordinary kids help defend Earth by using special rings to summon the super-strong and invincible Captain Planet. The kids can hold their own against the bad guys for a little while, but when they join together to summon their hero, it’s pretty much over for the villains. While there aren’t any eco-focused superheroes with green mullets working in ecommerce (at least, not that we know of), there’s still a lesson brand commerce pros can take from Captain Planet when it comes to setting their pricing strategy—specifically a product mix…
A Concise Guide to Price Skimming Strategy
If you’ve ever had your eye on a new smartphone, you’ve been faced with a choice: make your purchase as soon as it releases at the highest price, or wait a few months for the price to come down. While it was the same phone either way, your decision probably depended on what was more important to you. Did you want to be on the bleeding edge of new consumer technology? If so, you likely bought the product immediately. Or could you bear to be a little less trendy, but save money in the process? Then you probably waited a…
The Pros and Cons of Penetration Pricing Strategy
In the movie Crazy, Stupid, Love, there’s an iconic scene where cool-guy Jacob (Ryan Gosling) is teaching 40-something dad Cal (Steve Carell) how to reinvent his personal style and get back in the dating game. At one point in the scene, Jacob takes Cal’s old sneakers and chucks them off a balcony. “Are you in a fraternity?” he asks. “Are you Steve Jobs? Are you the billionaire owner of Apple Computers? … Well, in that case, you’ve got no right to wear (those) sneakers ever.” Jacob knew that a first impression was the most important thing for Cal to focus…
Premium Pricing Strategy: An Overview for Brands
Sometimes when you buy clothes from a “luxury” brand, you’re actually getting better quality for your money. Maybe the product is made with more durable materials, is more sustainably sourced, or even just looks better. And then, sometimes, a “designer” T-shirt is…well…just a T-shirt. What’s interesting, though, is that, in the latter case, people are often still willing to pay higher prices for that product. That’s because there’s a perception that they’re getting more for their money—especially if the product is associated with a particular brand that they like. And regardless of the objective “quality” of their products, there’s a…
Economy Pricing Strategy: What You Need to Know
Ever wonder why the prices of so many products end with “.99”? Most of the time, a bag of chips at the grocery store isn’t $5.00—it’s $4.99. Big difference, right? A single cent might not seem significant, but research has shown that this tactic (known as “charm pricing”) can actually increase demand for products. It kind of seems like our brains are hard-wired to find good deals. What does this mean for our ecommerce brands? Well, it means that by thinking of ways to creatively lower the prices of your products, you can put your brand in position to capture…
Competitive Pricing Strategy: Pros and Cons for Ecommerce
Chances are, we all know someone who’s a little too competitive. There’s always that one person who treats a friendly round of Mario Kart like the Indy 500, or pickup basketball like game 7 of the NBA Finals, or the company kickball game like there’s a million-dollar payday at stake. And while being overly competitive in most aspects of life doesn’t usually yield the rewards the effort suggests, there are times when being a little competitive and strategic can pay off big for your ecommerce brand—especially when it comes to pricing strategy. A competitive pricing strategy is one in which…
How a Unilateral Pricing Policy Protects Your Brand
Imagine you’re riding around with friends and everyone wants to get ice cream. You’re probably open to everyone’s input about where to get it, but less open to everyone’s suggestions about what flavor you should get. The squad’s hankering for some butterscotch might be off-putting if you’re more of a raspberry cheesecake connoisseur. In the ecommerce world, pricing policy works in a similar way. While there are some things brands and retailers can (and should) collaborate or negotiate on, it’s best for you to take the lead when it comes to setting prices for your products. That’s where a Unilateral…
