Daily News
From Home Furnishing Business
MLILY Protects Retail Margins with AI-Assisted Program
November 24,
2024 by Karen Parrish in Business Strategy, Industry 
MLILY USA, a leading domestic producer of sleep products, has made significant strides in protecting margins for their retail partners and the MLILY brand over the past year through proactive monitoring and enforcement of MAP (minimum advertised price) and MSRP (manufacturer’s suggested retail price).
The company’s MAP/MSRP E-commerce Protection initiative has been in force since late 2023. With a year under its belt, data shows a dramatic decrease of over 90% in violations. MLILY officials say they will continue the program because it has been highly effective in ensuring that all online listings of MLILY mattresses are the same price, follow MAP/MSRP guidelines, and that discrepancies are corrected before they negatively impact a sale.
The Active AI-assisted program works with MLILY's system to actively monitor key mattress SKUs round-the-clock by scanning the internet for any pricing discrepancies, then promptly identifying and addressing violations. When inconsistencies are detected, the system directly contacts the offending websites to enforce compliance. This focus also includes marketplace sites such as Amazon. Repeat offenders are manually reviewed and may have their right to sell the product revoked.
“This program is another way we’ve built a solid foundation for our retail partners to confidently showcase and sell our products knowing they're protected from online price undercutting,” said Derek Leishman, national sales director for MLILY.
“This proactive approach allows retailers to maximize their profit margins, avoiding the typical scramble to price-match online listings. Since implementing the program in late 2023, we’ve seen a dramatic decrease in MAP/MSRP violations.”
He explained that while many other manufacturers have MAP policies in place, enforcement often relies on reactive measures. In other words, policies are typically triggered by complaints from retailers who have already experienced the negative consequences of price discrepancies.
“This might involve losing in-store sales or being forced to price match online competitors, even if they are located far away. By ensuring consistent pricing across the board, we’re empowering our partners to maintain a competitive edge without compromising profitability,” stated Leishman.