Minimum advertised pricing is one of the positive outcomes of a more aggressive OTC retail environment. While veterinarians may dislike having to change their focus from cost-based margin, MAP offers a much improved and level playing field at the customer’s pocketbook.
Source: Veterinary Advantage, March 2020. Link. In today’s world, vendors need to have their products available online, in small, high-end pet stores, and independent veterinary practices, as well as the big box retailers.
For a manufacturer to survive, they need to satisfy the consumers’ buying preferences”
INSIGHTS: Work with key distributors and manufacturers to learn which items have a MAP price. Then make the proper changes in practice management systems to fix pricing at MAP or above instead of adjusting the formulas for mark-up or margin. Note: MAP programs are based on margin, not mark-up.