MAP (Minimum Advertised Price) Violations

[tachedout]

MAP (Minimum Advertised Price) Violations

This applies to all markets. Most in our industries know that many manufactures have a MAP price to protect not only the product but the retailers in brick and mortar stores from being undersold. Some call it price fixing but it is used to protect not only the integrity of the product but the pricing structure for wholesalers to supply retailers/companies a product for resale.

I have searched but can not find out if eBay supports enforcing MAP violations by companies selling below the price a dealer can purchase it to the public. I have many eBay customers offering "Best offer" prices below my MAP prices because others sell a similar item for 2% profit. I report the sellers to the manufactures and they investigate the seller to locate the source of that sellers product. But can it be reported to eBay? Whom can I contact at eBay?

Example : Widget

MSRP $100

MAP Price $80

Dealer price $60

Warehouse price $50

Listed on eBay for $55

[nuvistors]

You believe in price fixing  and  do not belive in Free Enterprise.

[katzcats]

Sellers can list their items at any price, they want.....There's no violation for that.

[tachedout]

I do not believe you understand keyboard cowboy.
MAP is a industry standard.  Companies found to be selling below that are punished, black listed, and cut off from the product.
in less than a decade I think that all mom and pop shops and brick and mortar stores will be obsolete.  

Its not about free enterprise but the ability to allow smaller companies to make money as well as multi million dollar companies.  Let the other 99% make a profit too.

[nc-daydreamer]

Where does one discover what the MSRP would be? And doesn't this price recommendation fluctuate with the status of the market on a daily basis?  And since many of the things sold on eBay are used, how would one determine such a value? 

There was a time when one would be listing an item and a red flag would appear with the average price a similar item was selling for - and placed a note for the buyer to see what the average selling price was.  But complaints from sellers [and rightffully so] ceased that activity as it was putting undue expectations on buyers about what was a fair price.  What 'right' did eBay think they had in limiting a seller's proffit margin like that? Plus, who is to say that while vendor #1 bought widget for $x.... and has expenses of $xx to cover... so their item gets priced at $$$ - while vendor #2 acquired the item for less and gets a bigger discount on expenses - so #2 can sell the item for less with the same profit margin?

Honestly, I'd think it would be up to the manufacturer who sets these prices to be the ones to complain or make their thoughts known to the eBay Board of Directors through legal channels.  As for a specific contact, that may be hard to determine.  I'd recommend your joining in on the Wednesday afternoon meeting with staff (see the ad/link on the front community page) or try asking Griff on the eBay radio show (link also on same page).  Perhaps you'll find some direction there.  You can also snail-mail a letter (or have your lawyer do it) addressed to the BOD using the address found below under the contact us link.

I don't think eBay cares, or has any control over what a free-enterprise marketplace vendor charges.  It is not any different than a yard sale or a flea market, imo.  The value of an item is what price a consumer will buy it at.  Often the MSRP is over-inflated from the get-go.  Therefore where does that leave the vendor and/or the consumer from the start?

If you decide to persue this issue - good  luck.

[tachedout]

All manufactures following MAP have a Price list sheet, the problem is enforcing it.

MSRP, Jobber(Usually MAP), Dealer, Wholesale, Central Warehouse Distributor
This is in regards to New vs Used.  If an item was used there is nothing to follow for MAP but new is a different story.

There is no fluctuation in daily prices.  You see items in stores such as Best Buy and Walmart being "Exclusive"
for instance they will buy a model television only at Best buy with 2 external inputs instead of 3 so they can offer it on sale.  Walmart can not Price match or complain because it is a different part number.  That is already in place.

I want to contact eBay in regards to enforcing this as a paid service.  The problem is sending a help ticket into eBay the answer is not found in a 3 ring binder for the help desk.

As for eBay not caring money always sways that battle:
1: Paid service to enforce it?
2: Also every time someone sells something 30% below MAP, Paypal and eBay fees are less = less money in eBays pocket.

[anonymoose99]

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@tachedout wrote:

I have searched but can not find out if eBay supports enforcing MAP violations by companies selling below the price a dealer can purchase it to the public.

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No, eBay does not support the enforcement of MAP violations. Nor will eBay provide information allowing a manufacturer to identify who a particular seller is (unless the manufacturer buys an item from that seller).

eBay does not know or care if a particular seller is someone who bought the product and decided not to keep it, or someone who buys wholesale, or someone who has signed an agreement with the manufacturer.

I hope this answers your original question.

[isgodyu2]

Many brick and mortar stores routinely sell items at special discount prices which are much below MAP. They're called "loss leaders". Those are extremely low priced items that sell for less than the seller has actually paid for them or is below the MAP. The seller offers a few like these week after week, in the hopes that buyers will not only but Item X at that cheap price, but also, buy the other items in his store which will make him a profit when all is said and done.

Many times those "loss leaders" will be on the end of the aisles and have a greater prominence that just being on the shelves. Many stores advertise that you may buy that "loss leader" item but only if you spend an additional $25 or so. Hopefully, that additional $25 wil cover his loss on that one item.

There'a a whole college education on marketing in stores ranging from those items conveniently right at the register that add to revenue to why the higest priced sugary cereal is placed closer to a child's eyeline and grasp than to an adults. 

[lowkeytrader]

I always have the same experiences, too. You have a question about something, the rabble doesn't understand the big picture, and somehow you're the idiot--especially if your concerns encroach upon some ignorant unlicensed business accustom to profitting by breaking the rules.

Anyways, eBay is aware of this and MAP is baked into their system. While trying to create shipping discounts, I discovered this exception:

• Items with a Minimum Advertised Price treatment (item price is not displayed because it is below the Minimum Advertised Price) are not supported.

This was cut and pasted from eBay itself, a dialog box that pops up after you click the hyperlink "minimum qualifications to be included in an offer".

In my experience, eBay is aware of every bit of graft that occurs within their ecosystem. They feign ignorance and choose not to act upon any of it until forced.

Best of luck to you.

[rapidtackle]

MAP is Minimum Advertised price and has nothing to do with final selling price.  You just can't advertise less than Map, but you can advertise MAP less 10% discount to be awarded at checkout.

I have access to different wholesalers and they do check if their dealers are violating MAP pricing, which again is Minimum Advertised Price...

[anthonbille-0]

No. eBay specifically states under its VERO policies that they do not enforce MAP violations.

[poll_john]

Let's say you're a home painter. You charge a fair price for your service. Someone comes along and undercuts you by half. Free enterprise in action. After a while, you can't get any contracts to do work because of this. Next thing you know you are working for minimum wage working for the guy that under cut you. All good?

[udrasul2012]

Doesn't that happen already with MAP?

Last time I checked  business that are starting rely upon free enterprise to get started with out a third partly using regulation as a tool to prevent competition.

You seem to forget that larger business can easily eat a fine, while a small business can't.

[alcoforever]

MAP only applies to those retailers that have a contractual agreement with the manufacturer.   The MAP is part of the agreement.

Once a retailers sells one of the items, fair use doctrine takes over and MAP no longer applies because the end buyer is not contractually bound to the manufacturer.   So, I can buy a widget with a MAP of $100 and turn around and sell it for $50 on ebay.   All perfectly legal.