MAP pricing: minimum advertised price and closeouts
MAP, or minimum advertised price, is a brand policy setting the lowest price at which authorized sellers may advertise a product. It limits the advertised price, not always the selling price. For closeout buyers, MAP matters most online, where brands watch listings and may act against sellers who undercut it.
Reviewed by Tyler Kober · Updated
Key takeaways
- MAP limits the advertised price that authorized sellers show, not necessarily the final selling price.
- Whether MAP binds you depends on your relationship with the brand and the terms you bought under.
- Brands often handle closeout excess by restricting channels (such as no online) rather than relying on MAP.
What is MAP pricing?
MAP stands for minimum advertised price. It is a policy a brand sets for its authorized sellers: they may not advertise the product below a certain price. MAP controls the advertised price on websites, flyers and listings. It does not always control the final selling price at the register or in a shopping cart.
How MAP affects closeout trading
Brands use MAP to stop price wars between their dealers and to protect perceived value. When a brand has excess, it faces a problem: selling closeouts cheaply could lead to listings far below MAP. Brands handle this in a few ways:
- Channel restrictions on the closeout sale, such as no online resale or export only.
- Label removal or selling unbranded.
- Selling only to buyers who agree in writing to respect MAP or other conditions.
- Monitoring marketplaces and filing complaints against listings they believe break rules or rights.
For the buyer, the key question is what you agreed to. A buyer with no dealer agreement may not be bound by the MAP policy itself, but the purchase terms may still restrict where and how the goods can be sold. This is general information, not legal advice; read your terms closely and ask a lawyer if a brand contacts you about pricing.
Example
A brand sells excess kitchen appliances to a closeout buyer on condition that they not be sold online. An online reseller later asks the closeout buyer for some units to list on a marketplace below MAP. Because the original terms said no online sale, the closeout buyer declines. The restriction, not MAP, is what decides it.
The common confusion
MAP is often confused with MSRP and with resale price maintenance. MSRP is a suggested selling price; MAP limits advertised prices for authorized sellers; resale price maintenance is an agreement fixing the actual resale price, which raises different legal questions. Online sellers should read MAP policies and closeouts. Brand-sensitive buyers such as off-price chains deal with MAP-related conditions often.
Related terms
Frequently asked questions
Does MAP apply to closeout merchandise?
It depends. MAP policies usually bind the brand's authorized dealers. A closeout buyer without a dealer agreement may not be bound by MAP itself, but may have agreed to other restrictions when buying, such as no online sale. Marketplaces may also act on brand complaints. Read your purchase terms and the marketplace's rules.
What is the difference between MAP and MSRP?
MSRP is the price the manufacturer suggests stores charge. MAP is the lowest price authorized sellers may advertise. A product can have an MSRP well above its MAP. Stores may sell between the two, and some sell below MAP in ways the policy allows, such as in-cart pricing.
Can a brand stop me from selling closeouts below MAP?
A brand can stop doing business with authorized sellers who break its policy, and can enforce any restrictions you agreed to in writing. It can also use marketplace tools for IP or authenticity complaints. What it can do in your case depends on your agreements and the law where you sell, so get advice if challenged.
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