MSRP is the retail price a brand suggests; stores can sell above or below it. MAP (minimum advertised price) is the lowest price a brand allows resellers to advertise, and it limits the advertised price, not what a store finally charges. If you're a new brand starting wholesale, set a clear MSRP and keep your own site's promotions consistent first. Consider a MAP pricing policy once online resellers start advertising your line below MSRP.

Key takeaways

• MSRP is a suggestion. Retailers can sell above or below it.
• MAP controls advertised prices only. Resellers still decide what they actually charge.
• A MAP pricing policy is about your resellers' ads. Pricing on your own site is a separate channel decision, and undercutting your stockists causes friction.
• Law firms generally favor a one-sided (unilateral) policy with no reseller signatures. Have a lawyer review it before you publish it.

What is the difference between MAP and MSRP?

MSRP, the manufacturer's suggested retail price, is the price a brand recommends retailers charge shoppers. It also goes by SRP, RRP or list price. As Investopedia notes, MSRP is only a suggestion, so a boutique can price above it or run a sale below it. MAP, the minimum advertised price, is the lowest price a brand allows resellers to show in ads and listings. Law firms including Foley & Lardner, Grant Genovese & Baratta and MC Law agree that MAP limits the advertised price, not the final selling price. For other pricing and ordering terms, see the wholesale terms glossary.

Here is how the two compare:

Can a store sell below MAP?

Yes. A reseller can charge less than MAP at the register or at checkout, because MAP only governs what it advertises. Law-firm guidance says resellers remain free to set the price they actually charge. The gray area is "add to cart to see price" listings. Foley & Lardner describes a case in which a federal court in Florida let a "price in cart" theory go forward as resale price maintenance, because selling below MAP was impracticable. That was a single case, but it's still a good reason to keep your MAP pricing policy focused on advertising and out of the checkout.

Does a MAP pricing policy apply to your own website?

A MAP pricing policy is about your resellers' ads, so it isn't what sets the prices on your own site. How you price there is a channel-policy choice, and your stockists will notice it. On r/smallbusiness, a brand owner said a boutique customer was upset about a sale on the brand's own website, and asked whether a retailer gets any say in it. If your site runs deep discounts while you ask stockists to hold their prices, expect wholesale channel conflict. Keep your own promotions predictable and in line with what you ask of resellers.

Should your brand set a MAP pricing policy?

You may not need one yet. Start with a clear MSRP that leaves your stockists a workable margin, plus a consistent promotions policy for your own site. A MAP pricing policy becomes worth considering when:

1. Online resellers or marketplace sellers carry your line.
2. You see your products advertised below MSRP in listings, emails or ads.
3. Your own site's pricing and promotions are stable, so you aren't asking resellers to meet a standard you don't follow yourself.
4. You're ready to apply the policy the same way to every reseller, with no one-off deals.
5. You can have a lawyer review the policy before you publish it.

If only the first point is true, a clear MSRP shown on every line sheet and price list may be enough for now.

What does a MAP pricing policy usually cover?

Most published policies have four parts:

• Covered products. Which items or collections the policy applies to.
• What counts as advertising. Per Foley & Lardner and Grant Genovese & Baratta, policies typically cover online listings, print ads, emails and marketplace listings. Spell this out. One online retailer on r/ecommerce described getting MAP notices over 'add to cart for extra savings' wording, so state exactly what is and isn't covered.
• Exceptions. Any situations where the policy doesn't apply. State them up front, and make them the same for everyone.
• What the brand will do. For example, a brand may decide on its own to stop supplying a reseller that advertises below MAP. Have a lawyer review this part closely.

What legal lines do lawyers advise not to cross?

This section covers US practice. The rules differ in other countries. This is general information, not legal advice, so talk to a lawyer about your specific MAP pricing policy.

Under the Supreme Court's Leegin decision, federal law judges resale price maintenance under the rule of reason. Law firms note that some states, such as California and Maryland, may treat minimum resale price agreements as per se unlawful. This is why law-firm guidance generally favors a unilateral policy under the Colgate doctrine: the brand announces its policy and decides on its own how to respond, without reaching an agreement with resellers.

Lawyers commonly advise brands not to:

• Ask resellers to sign, acknowledge or agree to the policy.
• Negotiate exceptions with individual resellers.
• Act on one retailer's complaint about another retailer's prices.
• Reinstate a reseller just because it promises to comply.
• Coordinate MAP with competing brands, for example through a trade association. KJK's coverage of a pending case describes this as high-risk.

Because the outcome depends on the facts and on state law, have a lawyer review any MAP pricing policy before you adopt it.

How do you keep wholesale and retail prices consistent across buyers?

Whatever you decide about MAP, every buyer should see the same wholesale price and the same MSRP. A line sheet is usually where buyers first see both prices, and your wholesale price list should match it.

In Brandboom, the Show Prices setting lets presentations and PDF line sheets display the wholesale price, the retail price (MSRP), both or neither. Price lists let you keep separate wholesale and retail pricing for retailers, distributors or currencies without duplicating products. Each presentation link uses one price list, so each type of account always sees its own prices. Brandboom plans start at $50/month for the Basic plan.

FAQ

Is MAP pricing legal in the US?

Law-firm guidance generally treats a unilateral MAP pricing policy that limits advertised prices as lower risk than an agreement with resellers. Under the Supreme Court's Leegin decision, federal law judges resale price maintenance under the rule of reason. Some states, such as California and Maryland, may treat minimum resale price agreements as per se unlawful. Have a lawyer review your policy before you publish it.

What is IMAP pricing?

IMAP stands for internet minimum advertised price. It works like MAP but applies only to online advertising, such as website and marketplace listings. You may also see UMAP or UPP, which stand for unilateral MAP or unilateral pricing policy. Either term means a policy the brand announces and applies on its own, without asking resellers to agree to it.

Can a retailer sell below MSRP?

Yes. MSRP is a suggestion, so retailers can price below it for a sale or above it if they choose. Because of that flexibility, some brands with online resellers add a MAP pricing policy. MAP limits the advertised price but still leaves the actual selling price to the retailer. A clear MSRP on your line sheets gives every buyer the same starting point.

Is a MAP pricing policy enforceable?

Under the unilateral approach law firms generally favor, a MAP pricing policy isn't an agreement with resellers. "Enforcing" it means the brand decides on its own how to respond. For example, a brand may choose to stop supplying a reseller that advertises below MAP. Lawyers advise applying the policy the same way to everyone, not negotiating exceptions, and having it reviewed before you rely on it.