“Most people do not realize that home furniture has a 200% to 400% markup on it. Some has less, but that is where the majority falls. In fact my friend was a furniture industry insider and at the Highpoint show, a furniture company told him to mark up the price of a wall unit by 400%. One wall unit he came back home with for $1800 had a retail price of $6500. So when these big stores advertise in the local papers with 50% off MSRP sales, they could still be doubling their money. Not only that, many stores advertise their sale prices are 50% off MSRP, yet if you dig a little deeper, you might find that they never sold the pieces at MSRP to begin with, so they are really just dropping their price maybe 5 to 10%. Some stores don’t drop their price at all, because they were already at MAP. This means that store really is not having a sale!”
minimum advertised price
What Is Minimum Advertised Price?
By 9.26.07
Minimum Advertised Price is an agreement between suppliers and retailers stipulating the lowest price an item is allowed to be advertised at. If you’ve ever tried to shop around and keep nosing up against the same number, you may have just discovered that good’s MAP. This is why sometimes you see signs that say “price too low to advertise!” Or why when shopping online, sometimes the price doesn’t show up until further in the transaction process. Retailers can incur sizable fines and/or penalties from their suppliers for violating MAP contracts.
