Disclaimer: I own a retail gift shop in a major tourist destination in Florida. Our local economy is 100% tourism based. I’m brick and mortar only. No online sales.
I carry a few lines of brand name apparel that have MAP policies. I also can’t sell these items online via eBay, Amazon, Aliexpress, etc... Essentially no online marketplace is allowed for these brands. I can sell them at my own business website if I choose.
I’m actually ok with their MAP policy. It levels the playing field with other retailers around me that may also carry the same brand. Everyone has to abide by the policy for external advertising. Some retailers who have larger purchasing power than me might get those goods at discounted prices from what I can buy them for (i.e. they are buying 2x or more than what im buying in a given year). It’s nice that they can’t advertise a retail price less than the MAP even since their wholesale costs are lower.
It also prevents “loss leader” sale that is very common with larger box store retailers. I don’t have to worry about a store down the street advertising the same brand for $15 less than wholesale on an item just to get people in the door.
The third reason I like it is the psychological effect of “perceived value”. I’ve done non-scientific tests in my store where I’ll price two very similar items at two very different prices. People seem to be drawn first to the higher priced items most of the time. It’s quite the thing to witness to be honest. Keeping the MAP price higher keeps its perceived value higher.
So anyway that’s my two cents working in retail for 25+ years now. I, as a retailer and business owner, don’t mind MAP at all. Take it with a grain of salt. I understand this all doesn’t translate to IT which is what Scott was referring to in the OP. But I wanted to give a side of MAP that perhaps wasn’t considered.
