I think you are missing the risk. The supplier could raise prices but there comes a point when demand slows and now the retailer is stuck with inventory. If eve

I think you are missing the risk. The supplier could raise prices but there comes a point when demand slows and now the retailer is stuck with inventory. If every one else is selling below MSRP and you are selling for double, you won't get business until everyone else is sold out. Most retailers and wholesalers want a certain amount of basis points. They simply want to sell everything for X% more than they paid. They don't want to be in the speculation game. Graphics cards is mostly a function of re-purposing the supply for something it wasn't really intended for. Look back at beanie babies when they were a craze. As a retailer, you wouldn't want to get stuck with inventory you couldn't even move at a loss. I do agree that they could be a little more aggressive with selling at MSRP if demand is high and drop back to "sale" prices if demand slows. I think there are probably some legal things for some products that you can't sell for over MSVP or for less than some minimum advertised price. Additionally, some of these products can be seen as "loss leaders" in the sense that they become a trusted source for "good deals".