GC Challenging MAP Policies

On Dec. 16, Guitar Center sent a letter to vendors indicating that it may begin advertising products below minimum advertised price (MAP) policies.

The letter, signed by John Bagan, the company’s executive vice president and general manager, merchandising and supply chain, outlined that when MAP is “inconsistent with actual market pricing,” GC becomes uncompetitive and wastes resources. The letter declared that Guitar Center will take, “whatever actions it deems appropriate to maintain its competitiveness in the marketplace and to achieve a fair return on its substantial investments in its vendors and products. These actions may include competing with and matching the lowest prevailing advertised price in the market, seeking vendor chargebacks or other concessions to restore [GC's] expected return on investment, canceling purchase orders, terminating some or all product lines of a vendor, or taking any other action it deems appropriate.”

GC will enforce the policy at its sole discretion.