6 ms·

I've sometimes wondered why it's legal for markets to be coerced not to price items below MSRP. The acronym includes the word suggested right? Not mandated?

• jcampbell1 4y ago
  It isn’t a mandate. It is a condition for resupply. High end sporting good brands are known for enforcing MSRP so the high end retailers have budget for sales people and demos. They cutoff supply to discount retailers to maintain good relationships with retailers. REI would drop North Face in a second if North Face clothing was available at the TJMaxx next door. The relationship cuts both ways.
  • gausswho 4y ago
    I understand the chain of incentives, but I see room for it being legislated away as anti-consumer.
    • midoridensha 4y ago
      There's no shortage of brands of outdoor clothing. If you don't like North Face's high prices (enforced by contract to be only sold at MSRP), you're free to buy from countless other brands, some high-end, others not. The same is true for Apple: there's dozens of competing phone brands. I don't see why mfgrs shouldn't be allowed to have sales and pricing agreements (contracts) with retailers so that their goods are sold in ways the mfgr approves of.
    • TillE 4y ago
      That would effectively mean a law requiring companies to wholesale to anyone at the same price. That's a rather extreme intervention in a market for no clear benefit. We're really not talking about anything that can be construed as monopolistic behavior.