4 ms·

That's normal for MSRP though. If 50 websites sold a brand, and that brand had a MSRP, and one brand undercut that MSRP, the 49 other sites are going to send it

That's normal for MSRP though. If 50 websites sold a brand, and that brand had a MSRP, and one brand undercut that MSRP, the 49 other sites are going to send it to the brand and write of a cease & desist to that one site. Typically the brand does the enforcement, but competition does it just as much, since price shopping and competition can be brutal in eCommerce. It doesn't matter if one store has lower fees (e.g. doesn't accept Amex compared to another store) - they can't undercut MSRP.

em-bee 4y ago
enforcing a MSRP is usually illegal though. it's called "manufacturer's suggested retail price" for a reason.
- bombcar 4y ago
  The way it’s enforced is by true distributor cutting that retailer off. Usually you can get around it with “see price in cart” trickery.
  - axiolite 4y ago
    No, you're confusing MSRP with MAP (minimum advertised price). MSRP is typically the MAXIMUM price you'll see an item sold for, while MAP is typically the MINIMUM.
stale2002 4y ago
Enforcing an MSRP is bad for consumers. It disallows a store from passing on savings to a consumer. A store should be allowed to sell something for cheaper if it wants.
axiolite 4y ago
> That's normal for MSRP though. If 50 websites sold a brand, and that brand had a MSRP, and one brand undercut that MSRP, the 49 other sites are going to send it to the brand and write of a cease & desist to that one site. No clue what you're talking about here... MSRP has NEVER been a REQUIRED price to sell at. MSRP is generally the MAXIMUM price an item is sold for, with a healthy profit margin baked-in. If 49 retailers are colluding to keep prices at MSRP, they're breaking the law and are bound to be caught and heavily fined for doing so. What manufacturers try to enforce is a MAP (minimum advertised price). However, the MAP is still NOT the lowest price one can sell a product for, only the lowest they can advertise the price at. When an e-Commerce website doesn't prominently list a price, but instead says "Add to cart to see our price" it's because they're selling it below MAP. That is still perfectly legal, there aren't 49 other retailers out there ready to punish them for doing so, and the manufacturer can't do a thing as long as they don't prominently advertise that lower price. The "street price" is almost always below MSRP, and it's not very unusual for it to be below MAP as well. Both MAP and MSRP represent pricing levels/suggestions by the manufacturers to the retailer; The retailer is not bound to use either price, and can go higher or lower than either; https://www.liveabout.com/map-vs-msrp-pricing-1564214
- ThunderSizzle 4y ago
  Apologies on the MSPR <> MAP mixup, but the rest of I said is true in terms of MAP. Even "going to cart" to get price can be seen as improper avoidance of MAP by some brands. The only way to get around MAP, in that case, is via more hidden things, like a coupon code from an email. I've even seen brands require a specific shipping charge - and that it couldn't be combined with the item's MAP to show "free shipping", even through the cart. And yes, while "MAP" is not technically legally enforceable, a brand can also tell that store they won't let them sale any more...so it's still perfectly enforceable if the brand wants to continue with the 49 other stores and drop that 1 store.
  - ouid 4y ago
    It is illegal to enforce it.
stetrain 4y ago
A brand telling a store what to sell for is the inverse of a store telling the brand what to do in other stores. Although both of those situations are a party using their market power to reduce price competition, so I’m not sure either is a good thing.

em-bee 4y ago

enforcing a MSRP is usually illegal though. it's called "manufacturer's suggested retail price" for a reason.

bombcar 4y ago
The way it’s enforced is by true distributor cutting that retailer off. Usually you can get around it with “see price in cart” trickery.
- axiolite 4y ago
  No, you're confusing MSRP with MAP (minimum advertised price). MSRP is typically the MAXIMUM price you'll see an item sold for, while MAP is typically the MINIMUM.

stale2002 4y ago

Enforcing an MSRP is bad for consumers. It disallows a store from passing on savings to a consumer. A store should be allowed to sell something for cheaper if it wants.

axiolite 4y ago

> That's normal for MSRP though. If 50 websites sold a brand, and that brand had a MSRP, and one brand undercut that MSRP, the 49 other sites are going to send it to the brand and write of a cease & desist to that one site. No clue what you're talking about here... MSRP has NEVER been a REQUIRED price to sell at. MSRP is generally the MAXIMUM price an item is sold for, with a healthy profit margin baked-in. If 49 retailers are colluding to keep prices at MSRP, they're breaking the law and are bound to be caught and heavily fined for doing so. What manufacturers try to enforce is a MAP (minimum advertised price). However, the MAP is still NOT the lowest price one can sell a product for, only the lowest they can advertise the price at. When an e-Commerce website doesn't prominently list a price, but instead says "Add to cart to see our price" it's because they're selling it below MAP. That is still perfectly legal, there aren't 49 other retailers out there ready to punish them for doing so, and the manufacturer can't do a thing as long as they don't prominently advertise that lower price. The "street price" is almost always below MSRP, and it's not very unusual for it to be below MAP as well. Both MAP and MSRP represent pricing levels/suggestions by the manufacturers to the retailer; The retailer is not bound to use either price, and can go higher or lower than either; https://www.liveabout.com/map-vs-msrp-pricing-1564214

ThunderSizzle 4y ago
Apologies on the MSPR <> MAP mixup, but the rest of I said is true in terms of MAP. Even "going to cart" to get price can be seen as improper avoidance of MAP by some brands. The only way to get around MAP, in that case, is via more hidden things, like a coupon code from an email. I've even seen brands require a specific shipping charge - and that it couldn't be combined with the item's MAP to show "free shipping", even through the cart. And yes, while "MAP" is not technically legally enforceable, a brand can also tell that store they won't let them sale any more...so it's still perfectly enforceable if the brand wants to continue with the 49 other stores and drop that 1 store.
- ouid 4y ago
  It is illegal to enforce it.

stetrain 4y ago

A brand telling a store what to sell for is the inverse of a store telling the brand what to do in other stores. Although both of those situations are a party using their market power to reduce price competition, so I’m not sure either is a good thing.