Your argan oil brand signs several distributors, then one of them cuts its price on a marketplace to win orders. Within weeks the others complain, and shoppers begin linking your brand with low prices instead of quality. A clear advertised-price policy addresses this risk.
Minimum advertised price vs. recommended price
The minimum advertised price (MAP) is the lowest price a distributor agrees to show publicly. It does not necessarily stop a privately negotiated discount. A recommended price is only a suggestion.
| Tool | Nature | Strength |
|---|---|---|
| Recommended price | Suggestion | Non-binding |
| Minimum advertised price | Limit on public advertising | Contractual |
| Resale price maintenance | Fixing the final price | Heavily restricted in many markets |
Why it matters for argan oil
- The product is easy to compare, so price becomes the first filter.
- A premium image is fragile when a price looks lower than the ingredient's cost.
- Distributors who invest in training lose out to those who simply list at the lowest price.
- Marketplaces make every price cut visible to everyone.
A legal warning first
Competition law varies by country. Imposing a resale price can be unlawful in some markets, and advertised-price policies are treated differently from one system to another. Ask a local lawyer before applying any clause. This article is practical guidance, not legal advice.
Clauses to include
| Clause | What it covers |
|---|---|
| Scope | Products, sizes and markets covered |
| Channels | Websites, marketplaces, social media, possibly physical stores |
| Threshold | The figure or how it is calculated, and who updates it |
| Exceptions | Promotions announced in advance, clearing stock close to expiry |
| Monitoring | How often and how prices are checked |
| Remedy | Correction period and escalation steps |
Practical steps
- Work out your price floor first from landed cost and a reasonable distributor margin; see our article on landed cost for argan oil.
- Focus on the channels that actually matter.
- Keep the policy to two pages at most.
- Make it part of the distributor agreement; see also exclusive vs. open distribution.
- Assign one person to monthly checks.
- Record every breach with a dated screenshot.
Handling a breach without losing the partner
- A friendly written note with the screenshot and a correction deadline.
- A formal reminder of the clause if it repeats.
- Temporary limits on discounts or stock priority.
- A review of the relationship only for deliberate repetition.
Many breaches come from an oversight or leftover stock, so ask before accusing.
Non-price alternatives
- A size or gift set specific to each channel.
- Commercial terms tied to training and presentation standards.
- Volumes matched to each market so nobody is forced to liquidate.
FAQ
Is a minimum advertised price legal everywhere?
No. It depends on the market and the type of clause, so local legal review is needed.
Does it prevent all discounts?
It usually governs what is advertised publicly, sometimes leaving room for private negotiation.
How do I monitor prices without spending hours?
Check a fixed list of platforms monthly and log results in a dated table.
Is it useful for a small brand?
Yes, because price perception forms early. Start simple and expand as your network grows.
Conclusion
A clear policy protects your partners' margins and your brand image, provided it rests on realistic numbers, legal review and gradual enforcement. To plan sizes and volumes per channel, send a quote request and explore our private label services.
