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How to Set up MAPI Pricing
#1
Chanimal MAP Pricing

The following are two different samples for MAP pricing. The first one is an indirect approach to impose MAP pricing, the second is a straight forward, comprehensive treatment (separated by ****):

EXAMPLE # 1

Reseller Prices. The prices a reseller pays for Products and Services will be set by the Company. Subject to the Company’s ability to impose maximum resale price and minimum advertised price limitations, the reseller is free to determine its resale prices unilaterally.

Special Pricing. The company may provide resellers with special pricing, rebates, discounts, offers, promotions, or other special incentive programs Resellers in whole or in part ("Company Programs"). Such Company programs will be limited to Resale made to one or more End Users. Any such Company Programs must be in writing, which includes email notification from Company, and must specify a fixed time period during which such Company Program will be provided. If no time limit is specified in writing, the time period shall be ninety (90) days from the effective date of such Company Program. Company may condition any such Company Program on VAR's agreement not to resell the Products and Services subject to the Company Program at or above particular prices determined by Company. No such condition will prohibit VAR from selling at any price below the prices established by Company.


*************

EXAMPLE # 2

Minimum Advertised Price Policy

The company understands the need for its resellers to retain profits from its retail sales of its products. Accordingly, the Company has adopted this pricing and advertising policy.

Program Details

Resellers who are eligible for Co-op funds and are advertising any Company product must comply with Company’s unilateral Minimum Advertised Price (“MAP”) policy. This policy does not extend to a Reseller’s actual resale price, which Reseller sets in its sole discretion.

Company has not, cannot and will not make any agreements with any Reseller either expressly or by implication, concerning the resale prices of the products that Autodesk sells. Company acknowledges that each Reseller is free to determine its own retail prices and to advertise such prices. Similarly, Company has the right to determine the Resellers to which Company sells, and reserves the right to discontinue, and is formally announcing here that it has adopted this policy for its Resellers to follow. The company will uniformly and unilaterally implement the terms of this policy to those Resellers who fail to conform to the MAP policy.

Company also reserves the right at any time to change either this policy or the list of products to which it applies by adding or deleting products or modifying the MAP levels. Company will notify Resellers, in writing, in advance of any changes.


Responsibility

The Reseller’s entire organization is responsible for compliance with this policy. If any one location within a Reseller’s organization violates any component of this MAP policy, the consequence will apply to the entire organization.

Should Reseller work with other organizations in an affiliate relationship, both Reselling organizations must be Company Authorized Resellers. It is considered a violation of the MAP policy if a Reseller has advertised below MAP through an unauthorized affiliated company.


MAP Application


MAP policy applies to all forms of external advertising including, but not limited to:
  • Print ads (inserts, magazines, newspapers, posters, etc.)
  • Broadcast (radio and TV)
  • Direct Mailers, including email
  • Faxes
  • Internet (banner ads, broadcast emails, destination pages, third-party sites)
  • Billboards
MAP policy does not apply to the following:
  • In-store displays, banners or price markings provided they are not externally visible
  • Quotes, contracts, price lists provided for purposes of consummating a transaction as opposed to solicitation
Map Rules

Products to which MAP applies will be noted on the Company’s Price Lists posted with the company’s web portal and with any Distributors (excludes Retail products). The MAP price for each Product must be no less than the Suggested Retail Price indicated on the company’s web portal.
  • Resellers advertising a Company product governed by MAP must show the MAP price in close proximity to the Product or not show any price.
  • Deviations of up to one dollar ($1) below MAP are permitted to allow for various pricing conventions to be met.
  • Advertising without any reference to price does not violate the policy.
  • “Call for Price” or “Too low to show” advertising does not violate the policy.
  • MAP “struck out” (example: $299) is considered a violation of the policy.
  • Promises of price matching or beating competition prices do not violate the policy.
Promotions

Reseller bundled promotions do not violate the policy as long as the following criteria are met:
  • If a price for the Company Product is noted in the ad, the Company MAP must be used.
  • If the Company Product is being given away free as part of a bundle, the value (MAP) of the Company Product must be listed in the ad. Additionally, it must be listed in conjunction with the product, and not the footnote.
  • Rebates are not considered MAP compliant.
Note that Company bundles are subject to the General Map Rules above. Moreover, Company may sponsor promotions and rebates. During such periods, ads may include the promotional MAP or rebate, subject to the General Map Rules above.


Internet Advertised Pricing

Price advertising on the Internet must also comply with MAP on generally accessible web pages. A price that is listed on the front page of Reseller’s website, or front page of a section (e.g.: computers, electronics, hand helds, etc.) within Reseller’s website must comply with MAP. Should the Company Product be viewed as the result of utilizing the search function, the first time the product appears as a result of that search, the price shown must be MAP compliant. Additionally, listings on shopper’s sites and “paid for” advertising must follow MAP guidelines.

A “catalog” format on your site that lists the product, product description and “buy or purchase” button is not considered advertising and is considered your selling price (as long as it is not the front page of your website or front page of a section and the requirements of the previous paragraph are met).


MAP Communication

This MAP policy may be changed by Company at any time at its sole discretion. The Reseller will be notified in writing by email or by posting on the portal web site of any changes.

Non-compliance of MAP Policy

Non-compliance with this unilateral MAP Policy is considered a violation of Company’s Reseller Policies and will subject the Reseller to forfeiture of Co-op funds for a period of four months, calculated based on Co-op accrued during the one month immediately preceding and the three months following the publication or initial display of the price advertisement.

If Reseller can show that a violation was due to a system error or misinterpretation of the MAP policy, then Company may grant an exception to the penalty, no more than once per 12-month period. If an exception is granted, the Reseller must correct the non-compliance within one (1) business day. If the error is on a website, the advertised price must be changed. If the error is in print, a retraction must be printed.

Non-compliance Notification
Company will notify the Reseller in writing of the non-compliance.

MAP Policy Questions

MAP compliance is the responsibility of the Reseller. All questions should be in writing and submitted to the channel manager working with your account. The only Company Representative authorized to answer questions regarding this MAP policy is the MAP Policy Administrator:

John Doe
Director, U.S. Channel Management
Company
Contact Information

No other Company employee may answer questions about this Policy or modify this Policy.

Because this MAP Policy is a unilateral policy of Company, Company will not respond to complaints of resellers regarding the terms and conditions of this Policy. All other responses to questions will be made within five (5) business days from receipt of the question. In the absence of a response from Company, the ad placement is at Reseller’s own risk.

Because of legal constraints, no Company reseller should discuss this policy, or its retail prices, with any other Company reseller.
_________________
Ted Finch, CEO
Chanimal, Inc
512-263-9618

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