2018 ASTRA Flash Learning Presentation

1. Ten Tips to Tame The
MAPP Jungle
(Presented at ASTRA - June 10, 2018)
Presenter:
Ron Solomon
President/CEO
MAPP Trap

2. www.mapptrap.com
Ten Tips to Tame The MAPP Jungle
WHAT IS MAPP?
- A MAP POLICY (MINIMUM ADVERTISED PRICING POLICY)
- IMPOSES RESTRICTIONS ON THE PRICE AT WHICH A PRODUCT
OR SERVICE MAY BE “ADVERTISED.”
- DOES NOT RESTRICT THE ACTUAL SALE PRICE.
- PROTECTS YOUR BRAND FROM COMMODITIZATION AND
LEGITIMATE RETAILERS FROM LOSING PROFIT MARGINS.
ABOUT
MAPP

3. www.mapptrap.com
Ten Tips to Tame The MAPP Jungle
WHY IS MAPP?
STRATEGY TO PROTECT BRAND INTEGRITY AND
PROFITABILITY. AMONG OTHERS, MAPP TRIES TO ADDRESS:
- UNEVEN PLAYING FIELD FOR BRICK/MORTOR CAUSED BY LOW
BARRIERS TO ENTRY FOR ONLINE SELLERS
- RACE TO THE BOTTOM PRICING FACILITATED BY AUTOMATED
REPRICING BOTS
- “COMMODITIZATION” CAUSED BY OVER-DISTRIBUTION BY
UNKNOWN SELLERS PRODUCT DIVERTERS
- COUNTERFEIT AND GRAY-MARKET GOODS
ABOUT
MAPP

4. Ten Tips to Tame The MAPP Jungle
IS MAPP LEGAL? YES!
IN 2007 THE U.S. SUPREME COURT ADDRESSED THE ISSUE OF
MAPP IN LEEGIN CREATIVE LEATHER PRODUCTS, INC. V. PSKS,
INC. (127 S. CT. 2705 (2007)).
THE COURT OVERTURNED A NEARLY CENTURY-OLD RULE
AUTOMATICALLY PROHIBITING AS UNLAWFUL ALL "VERTICAL"
PRICE FIXING ARRANGEMENTS IN FAVOR OF A "RULE OF
REASON" TEST.
www.mapptrap.com
ABOUT
MAPP

5. Ten Tips to Tame The MAPP Jungle
NOT A CONTRACT OR AN
AGREEMENT
- IT IS A COMPANY POLICY – NO SIGNATURES REQUIRED
- IN SOME STATES, MAPP “AGREEMENTS” ARE NO LEGAL
- NON-NEGOTIATIABLE - RESIST THE TEMPTATION TO
IMPLEMENT POLICY IN RESPONSE TO COMPLAINTS
www.mapptrap.com
ABOUT
MAPP

6. Ten Tips to Tame The MAPP Jungle
ACT UNILATERALLY
- U.S. PRICE FIXING LAWS PROHIBIT COLLUSION BETWEEN THE
VENDOR AND RETAILER.
- SET YOUR OWN POLICY WITHOUT THE INFLUENCE OF
RETAILERS.
- TREAT RETAILERS EQUALLY. VENDORS THAT RESPOND TO
MAPP VIOLATIONS IN A WAY THAT IS NOT CONSISTENT INVITE
DISPUTES AND POTENTIAL LITIGATION.
www.mapptrap.com
ABOUT
MAPP

7. Ten Tips to Tame The MAPP Jungle
TIP
#1
UNDERSTAND OBJECTIVES
- LEVEL PLAYING FIELD?
- CONTROLLED DISTRIBUTION?
- PERCEIVED VALUE?
- PROFIT MARGINS?
- OTHER?
- WILLINGNESS TO FOREGO SALES?
www.mapptrap.com

8. Ten Tips to Tame The MAPP Jungle
CREATE POLICY REFLECTING
COMPANY’S SPECIFIC NEEDS
- NO ONE-SIZE FITS ALL
- BUDGETARY CONSTRAINTS
- INTERNAL STAKEHOLDERS
- WHAT’S YOUR TRUE OBJECTIVE?
TIP
#2
TIP
#2
www.mapptrap.com

9. Ten Tips to Tame The MAPP Jungle
TIP
#3
DISSEMINATE POLICY TO ALL
STAKEHOLDERS BEFORE-
LAUNCH
- AVOIDS PEOPLE SAYING THEY DIDN’T KNOW
- GIVES MERCHANTS TIME TO LIQUIDATE INVENTORY
- GET ALL THE “CONVERSATIONS” OUT OF THE WAY
www.mapptrap.com

10. Ten Tips to Tame The MAPP Jungle
TIP
#4
MONITOR PRODUCTS ON
RELEVANT DOMAINS
- AMAZON
- GOOGLE SHOPPING
- EBAY
- WALMART MARKETPLACE
- DOMAINS THAT ARE PRICE INFLUENCERS
www.mapptrap.com

11. Ten Tips to Tame The MAPP Jungle
TIP
#5
IDENTIFY UNKNOWN SELLERS
TO FIND SOURCE OF PRODUCTS
- MAPP TRAP
- FORENSIC ACCOUNTING
- DROP SHIPPERS
- SALES REPS/DISTRIBUTORS
- DATA FEEDS
www.mapptrap.com

12. Ten Tips to Tame The MAPP Jungle
TIP
#6
ENFORCE, ENFORCE, ENFORCE
- SENT EMAILS
- SEND LETTERS
- MAKE PHONE CALLS
- FOLLOW-THROUGH
- INITIATE LEGAL ACTIONS
- TAKE-DOWN NOTICES
www.mapptrap.com

13. Ten Tips to Tame The MAPP Jungle
TIP
#7
USE DO-NOT-SELL & DO-NOT-
SHIP LISTS
- TELL REPS WHO IS SUSPENDED
- TELL DISTRIBUTORS WHO IS SUSPENDED
- TELL YOUR WAREHOUSE
- TELL YOUR ACCOUNTING DEPARTMENT
- LIST UNAUTHORIZED SELLERS ON YOUR WEBSITE
www.mapptrap.com

14. Ten Tips to Tame The MAPP Jungle
TIP
#8
MEASURE & SHARE SUCCESS
SO EVERYONE KNOWS!
- TELL YOUR RETAILERS
- TELL YOUR SALES REPS
- TELL YOUR EMPLOYEES
www.mapptrap.com

15. Ten Tips to Tame The MAPP Jungle
TIP
#9
USE OTHER TACTICS
- CLEAN UP YOUR LISTINGS (MERGE ASIN’S, FIND BAD UPC’S)
- VET YOUR CUSTOMERS (ARE THEY WHO THEY SAY THEY ARE?)
- ADOPT AN AUTHORIZED RESELLER POLICY
- USE ONLINE DISCLOSURE AGREEMENTS
- USE VERO ON EBAY
- DEVELOP BUY-BACK PROCEDURES
www.mapptrap.com

16. Ten Tips to Tame The MAPP Jungle
TIP
#10
LET “MAPP TRAP” GUIDE YOU!
- WE MONITOR THE INTERNET (WITH HIGH DEGREE OF
ACCURACY)
- WE TELL YOU THE “TRUE IDENTITY” OF YOUR MERCHANTS
- WE ENFORCE YOUR POLICIES FOR OR WITH YOU
- WE UNDERSTAND YOUR PAIN AND WILL HELP TO PROTECT
YOUR BRAND
- WE LET YOU DO WHAT YOU DO BEST – MAKE GREAT
PRODUCTS!
www.mapptrap.com

17. INFO
MAPP TRAP
303-408-9790
RON@MAPPTRAP.COM
WWW.MAPPTRAP.COM
www.mapptrap.com