A contract or policy is important in all kinds of business. This important document usually contains the rules and regulations that should be followed by employees and the business itself and avoid committing violations. The same applies when companies set their price, which will be the pricing basis of their retailers. This is called the minimum advertised price (MAP) pricing policy.
For starters, the creation of a MAP policy is crucial in every business. It aims to put a limit on the minimum price that will be advertised to the customers via the brand’s retailers. On the other hand, retailers are not required to follow the brand’s exact suggested price. Rather, the retailers can set their price as long as it is not below the brand’s minimum price.
Using a policy template
For one thing, MAP policies are not illegal. In fact, it is a common practice done by a lot of brands and manufacturers. It also aims to protect the manufacturers but also the retailers as well. However, creating a MAP policy can be tricky, especially if you are doing it for the first time.
Fortunately, there is Google to help you out in drafting a MAP policy. In fact, you can find a lot of templates you can use to create a MAP policy. These said templates most likely came from actual manufacturers that are specially made for their retailers. You don’t have to worry about encountering complicated business jargon because most of these policies are made with simpler terms everyone can understand.
Risks of using a policy template
On the contrary, using a MAP policy template can have certain repercussions. You can use these templates as your basis but not copy it in its entirety. For one thing, using a template carelessly may compromise your company.
This is one reason you should not be lazy in making your own MAP policy. It can be easy to find a template and put your name into it. However, there can be a risk of compromising your company in the legal aspects of the business. That is why it is better to work with experts specializing in creating and protecting business-related policies and avoid any legal troubles in the future.
Some policies may be written in complicated legal jargon, although there are still some that are easier to understand. Still, it can be tempting to simply copy-paste the policy for your own use. However, this can potentially harm your business. That is why it is still best to make your own policy instead of copying it word-per-word.
What should be included in a MAP policy?
There are important factors that should be included in a MAP policy. Among these include the following.
- A company’s brief description stating your objectives in terms of setting your product pricing
- A list of products and their respective MAP prices
- Rules and regulations that retailers should follow to avoid penalties and punishments
- Specific channels that the MAP pricing will be applicable
- Advertisement guidelines
Creating your MAP policy can be challenging. On the one hand, it can be easier to copy from a template. However, doing so might compromise your business and even lead to legal consequences. On the other hand, it is better to work with legal experts specializing in creating business-related documents. At the end of the day, all businesses should comply with the law and establish a good reputation to the public.