Happy Lunar New Year! Have you seen this morning’s google doodle?
Happy Lunar New Year! Have you seen this morning’s google doodle?
In my second job out of college I was tasked with, in some instances, creating a luggage collection and working all the way through from concept to design to sourcing to pricing. When it came to the latter, I have to admit that I was pretty green in understanding retail vs. wholesale vs. MSRP vs. etc. etc. pricing and how it works.
I can by no means say that I am any more well versed in it but it does make more sense now. But, it never hurts to look back and learn more about that thing you used to do and see how you could have understood it better. So to google I went.
Well, I happened upon a great article that talked about MSRP (Manufacturer Suggested Retail Price) vs. MAP (Minimum Advertised Price).
Here are 5 key take-away’s:
1. “The price resellers pay is determined mostly by your MSRP (Manufacturer Suggest Retail Price). But once they’ve paid, they can then sell at whatever price they deem profitable to them. So if your MSRP is $50.00 and you sell to a retailer at 50% discount, they have the potential to make $25.00 profit. But if they’re willing to make less they can undercut the competition.
When this happens, and the price war kicks in, your MSRP goes out the window and your phone starts to ring off the hook with complaints from resellers.”
2. “A minimum advertised price is just that – it’s the agreed price a reseller agrees to advertise a brand or product at. There may be some wiggle room, but generally, when a reseller accepts the agreement, they’re stuck. They can’t advertise a product for sale any less than the agreed price. This means in print, online, or any where.”
3. “While collusion to maintain a fixed price or profit margin is illegal in most circumstances MAP policies are legitimate and valid – if done correctly…here’s the big differentiator – MAP pricing does not limit the actual selling price. It simply sets the minimum price a product can be advertised at – whether that’s in print or online.”
4. “Resellers are adverse to risk. They certainly don’t want to take on new brands and products that they’ll be undercut on by other resellers. They want to have some cost control and profit assurances. MAP affords them some protection. They know that if they buy your product to sell, they won’t necessarily see it online tomorrow advertised for way less.”
5. “MSRP is what you’d like everyone to sell your product at – and you’re discounting levels are based on it. While MAP is the price resellers agree to advertise your product at – provided you’ve had them sign reseller agreements. So, make sure you have reseller agreements in place.”
A little while ago I decided to take a night off from walking on the treadmill and reading my book club book and instead follow some sage advice and leaf through more business books. I decided to pull out four books that cover a variety of topics.
*Another similar book you may want to check out is: Leading Out Loud: A Guide for Engaging Others in Creating the Future
Below are some quotes from each book. I have numbered the quotes according to the number next to each book above. But I do encourage you to leaf through your own versions and learn a few things you may not have known in the past or had not thought about.
“Mindful consumption will flourish if consumers embrace it en masse. If enough of us change the way we buy, businesses will have no choice but to adapt. As the Internet has taught us, when tens of thousands of people band together to work toward a common end, it quickly gets the attention of corporations….The shift toward mindfulness maybe gradual. For most of us-including those who aspire toward mindful consumption-there is a wide gap between how we would like to consume and how we actually do consume…but consumer habits, however and grain, can be influenced by various means-a fact of which marketers are increasingly aware. “-4
“The change that is now required for success in many institutions is no longer merely incremental, it is discontinuous, radical, frightening to those who participate. And fields as diverse as economics, medicine, biological and physical research, social and political structures,and certainly business, we are not simply being asked to do better than our predecessors, we are being asked to do different. Leaders are faced with inspiring followers to take the same kind of risk; to jump this chasm with them…experiencing conviction of what changes required calls for personal reflection-not merely reading good management books. An authentic vision for progress doesn’t just appear out of the ether, nor does it [come] from what others believe to be important. Your passion about what you want to change the gross from the foundation of values that have been formed by your life experience.”-1
“Communication that moves committed action includes both passion and reason. Both are necessary general trust infection from others, so that the mind is as fully engaged as the heart. Accordingly, writing is imperative to communicating authentically. Writing reveals fuzzy thinking, exposes slurred distinctions: it clarifies. That’s why it is so difficult. And it takes time, more time to write them to make a few notes…Any leadership message you construct will be the basis for most communication you have about your plan to change things for the better. Others can help, but finally, it is your own values, your own commitment to an issue that will determine the power of the message to you, and therefore to others. Whatever response you want from others must happen to you first.”-1
“Method: structured interviews with the organization. Uses: identifying shared and divergent perceptions of opportunities and problems. You can interview people at the same level in different departments or bore down through multiple levels. Whichever dimension you choose, ask everybody the same questions and look for similarities and differences... Useful for: most useful for managers leading groups of people from different functional back rooms. Can be useful at lower levels if the unit is experiencing significant problems….Your learning priorities and strategies will inevitably shift… As you start to interact with your new boss, or to figure out where to get some early wins, or to build supportive coalitions, it will be critical for you to gain additional insights…What is your learning agenda, based on what you know now compose a list of questions to guide your early inquiry. If you have begun to form hypotheses about what is going on, what are they and how will you test them? How might you increase the efficiency of your learning process? What are some ways you might extract more actionable insights for your investment of time and energy?”-2
Poke around any of these books and you are sure to learn a few new things!
Oh my goodness! It’s been 5 years since I began this blog!
In honor of that day…I point you back to my original post that started me on this journey of writing over 470 blog posts! It was also interesting going back in time to February of 2010 and seeing all the cool things I used to be able to do. Go to events, volunteer, visit San Fran on a moments notice…ahh, the life of a single, unemployed, gal 🙂 How far I have come.
Thank you all for reading. next week we’ll return to our educational posts 🙂