Author Topic: Pirelli Minimum Advertised Price policy  (Read 311 times)

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Offline CRocker

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Pirelli Minimum Advertised Price policy
« on: January 15, 2018, 11:13:22 pm »
Has anybody else heard about a MAP policy from Pirelli?  Sounds like it should raise online prices by Feb 1...
« Last Edit: January 15, 2018, 11:39:44 pm by CRocker »

Offline ghostrider990

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Re: Pirelli Minimum Advertised Price policy
« Reply #1 on: January 18, 2018, 04:13:51 pm »
I keep hearing from the Dealerships this is supposed to happen across the board for all tires, and never does.

I almost wish it WOULD so they'd stop overcharging me for installations AND Tires, and I could just order them from the shop, and be done with it.  ::)

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Offline Steve in Sunny Fla

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Re: Pirelli Minimum Advertised Price policy
« Reply #2 on: January 18, 2018, 04:43:27 pm »
What surprised me about MAP is that once a distributor purchases a product, it's theirs to sell at whatever price they choose, and it's actually illegal for the manufacturer to control the price. I guess what's going on here is that the distributor isn't actually purchasing until after they make the sale, and so they can't control the street price. I went down this road over 20 years ago with a bow sight I invented and manufactured. We could not control street price because of the afore mentioned legalities. Steve
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Offline works4me

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Re: Pirelli Minimum Advertised Price policy
« Reply #3 on: January 18, 2018, 05:39:35 pm »
MAP has little to nothing to do with selling price.

MAP is for the seller to receive co-op funds for
featuring the manufacturer’s products in their ads.

It also creates the appearance of parity between high-volume
dealers and your local mom and pop shops.

Shame on you for not asking: “What’s your best price?” 

Offline CRocker

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Re: Pirelli Minimum Advertised Price policy
« Reply #4 on: January 18, 2018, 05:41:35 pm »
Ghostrider990...you will probably pay about the same as you are now...it will just be divided up differently...many shops choose one of three responses...1) If you don't buy the tire from me, I'm going to charge you more to mount it...2) If you don't buy the tire from me, I'm not going to mount it...3) If you don't buy the tire from me, I will mount it anyway. 

SISF...you are correct in most of what you said...although, the internet is much more of a factor now that when you went through it...however, we must differentiate between a "dealer" and a "distributor"...most sales are routed from a manufacturer, to a distributor, to the dealer...MAP Policies have never tried to control the pricing of an item by the dealer (that's price fixing...and, illegal)...but, they instead control the availability of a product...it is a contractual agreement entered into by both the manufacturer and the distributor...if a dealer is advertising a MAP product below the allowable price, that dealer can be shut off by the distributor for that product, line, or totally...whatever is determined by the policy.  Most distributors would rather take this route, rather that have the whole product line in jeopardy.  Many manufacturers have taken to another course regarding MAP...since MAP violations are more difficult to prove in court...they simply inform the website in question (Ebay, Amazon, etc) that the seller is using copyrighted photos without authorization...easy, peasy...shut off right away...

Dealers are always trying to get around the MAP policies...some do...some don't...but, they have mostly been designed to help the brick and mortar stores compete with internet sellers...

A general rule regarding MAP is:  If it is spoken, it is allowable.  If it is printed, it is advertising.