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MSRP is an agreement between Rayban and each of their retailers. If someone wants to sell Raybans, they have to agree to sell at MSRP. But as a retailer, ther
by smackfu 13y ago
MSRP is an agreement between Rayban and each of their retailers. If someone wants to sell Raybans, they have to agree to sell at MSRP. But as a retailer, there are plenty of other sunglass makers, who might not have the same requirements. So it's not like you have to sell sunglasses at $100 or anything.
Now imagine that one day, all the sunglass makers come to you at once, and say, you have to sell at MSRP, and it's $100. Since you are in the sunglass selling business, this sucks but what choice do you have? That's why this is also generally illegal, for competitors to collude in setting prices.
- ensignavenger 13y agoI think, also, that such agreements can only apply to the retailers advertised pricing- which is why online stores often say something like "Add to Cart for Price" or "Price too low to advertise", because they have an agreement with the manufacturer as to a Min Advertised Price. Retailers can thus sell Raybans for less, they just can't advertise it. At least, that is my understanding of the situation.
- josefresco 13y agoBad example... in this case Ray Bans are owned by the same company (Luxottica) who more than likely also owns the store where the item is being sold. http://en.wikipedia.org/wiki/Luxottica#Retail http://en.wikipedia.org/wiki/Luxottica#Retail
- leeoniya 13y agomy gf is an optometrist at Lenscrafters (owned by Luxottica), they have times during the year when they can get any galsses/sunglasses at 50% off for first pair, and 60% off for next 10. the markup, especially on their own brands is through the roof.
- smackfu 13y agoWell, then it's not a "real" MSRP if the manufacturer and the retailer are the same. There aren't two parties, so it's just the price and they have complete control over their own pricing.
- jonny_eh 13y agoFor more about the craziness of Luxottica: http://www.cbsnews.com/video/watch/?id=50149025n http://www.cbsnews.com/video/watch/?id=50149025n