What is MAP pricing and why do companies use it?
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Companies use MAP pricing for a variety of reasons. One of the primary reasons is to maintain the perceived value of the product in the eyes of the consumers. By setting a minimum price, the company can prevent retailers from engaging in price wars or discounting that might reduce the perceived value of the product. MAP pricing can also help to protect the profit margins of the manufacturer or distributor. By controlling the minimum advertised price, the manufacturer or distributor can prevent retailers from undercutting each other, which can lead to lower profit margins for everyone involved in the supply chain.
For more info: https://store.thegundock.com/blog/what-is-map-pricing-and-why-do-companies-use-it
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