After negotiating to get products to some retailers, one retailer (not a large one) that has both a physical store and also sells online asked for a minimum advertising price policy MAPP to ensure the market price of the product. I don't know anything more about a MAPP than from what I read via Google. These are products made entirely in the US for the US market, no drop shipping or importing.
I have an online store only at the very beginning stages, and I'm negotiating with several online marketplaces and retailers. No one has asked for it so far. The terms of negotiation with this retailer are keystone NET30 (they get them wholesale at 50% of the price listed in my store, ultimately selling the products at the same price I sell them). Does anyone have enough experience with MAPP to clarify my questions in practical terms (not just in theory)?
Question 1: Is this a good or bad thing for a small online business?
Question 2: I don't plan to drop prices below their prices but I have some discount codes (e.g. 15% off entire order for new customers). Would MAPP prohibit me from having such discount codes? The product prices remain the same as theirs, just a popup alerts customers to sign up and get the discount.
Question 3: Could this create issues with other retailers I'm negotiating with, meaning that they cannot advertise below MAP?
Question 4: I'd like to consult a professional but don't have the budget to pay 1K for a MAPP. Does anyone know of any resource for this?
To round it up for illustration purposes, say I sell a candle retail in my store at $20, I give it to a retailer wholesale at $10 and she sells it for $20.
Thank you very much!
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