9.23.11 | ATA Briefing: Minimum Advertised Price (MAP)
NEW ULM, Minn. - Recently, ATA member dealer Spirit Quest Archery circulated an email concerning the enforcement of Minimum Advertised Price (MAP). The email stated that a "plan of action is right now being implemented between (Spirit Quest Archery) and The Archery Trade Association (ATA)."
The only action the ATA has taken or intends to take involves providing all ATA members a chance to have a voice and weigh in on MAP, which is a highly sensitive and potentially controversial issue.
"The ATA is supportive of members like Spirit Quest Archery who are working hard to ensure their stores stick around for the long haul," said Jay McAninch, ATA CEO/President. "Ultimately, as a membership organization, the ATA is working to identify ways to ensure members honor MAP without the ATA acting as an enforcer - a role the ATA cannot assume. Since all sectors of the industry are ATA members, our role will be to promote business practices that are best for everyone and urge all members to work to that end. By giving dealers a chance to talk openly about pricing issues in a forum and being sure manufacturers have a chance to hear and react to any concerns raised, we think this problem can be substantially improved."
Last year, the ATA addressed MAP in a two-part series published in Inside Archery. The first column considered MAP and its role in ensuring competitive balance among traditional storefronts and online archery retailers. The second column profiles a number of online archery retailers, their perceived threat and MAP's impact on ecommerce. Future pieces will address how manufacturers attempt to enforce MAP and highlight limitations that restrict individual companies from stopping price cutting by some product resellers.
"We're concerned about MAP largely because it relates directly to the profitability of retail sales in our industry," said McAninch. "Storefront retailers have been the backbone of our industry and we are counting on them to be there to help recruit and retain archers and bowhunters in communities across the country."
Without MAP, many of these "bricks and mortar" dealers won't be able to stay in business. The ATA believes this issue must be discussed and improved. Anyone with concerns about MAP are urged to call manufacturers directly and discuss the issue.
"We also need to hear from everyone about this issue and everyone can trust that we'll work to provide a forum for good ideas and initiatives to emerge that can make a difference," said McAninch.
For more information about the ATA, please contact (866) 266-2776.
Did You Know?
The ATA estimates that of the total archery market in 2004, 63.2 percent of all sales were made by domestic independent retailers.