[DMCForum] Re: Car Covers priced too low...

["wayofcain" <wayofcain@xxxxxxxxx>]

This is really none of my business but if the info helps...

My company sells items supplied by one manufacturer to many 
distributors. We have agreements about Minimum advertisable prices. 
(MAP)

MAP prices are dictated by the manufacturer and are usually lower 
than the MSRP. Meaning MSRP $1995 Your price $1795, for example. 

The MAP means nothing, we can sell the item for cost if we wanted to. 
BUT, we cannot advertise it for 1¢ less than the MAP. We have 
advertised for less than MAP before by accident. 

If a competitor catches us advertising the price for less than MAP 
they can call the manufacturer and we can end up in some trouble. 

If a competitor catches us selling for less than MAP but still 
advertising at MAP, they can't do anything and we are still in 
the "right".

I don't know anything about the Car Cover situation, but thought 
maybe that info would be helpful.

Cain Grimes
002835

--- In DMCForum@xxxxxxxxxxxxxxx, Marc Levy <malevy_nj@xxxx> wrote:
> Im no lawyer, but...
> 
> http://www.ftc.gov/bc/compguide/illegal.htm
> 
> 
> "Resale price maintenance agreements. Vertical
> price-fixing -- an agreement between a supplier and a
> dealer that fixes the minimum resale price of a
> product -- is a clear-cut antitrust violation. It also
> is illegal for a manufacturer and retailer to agree on
> a minimum resale price. "
> 
> then, typical of bullshit laws for big business in
> this country... they blow it out of the water:
> 
> "The antitrust laws, however, give a manufacturer
> latitude to adopt a policy regarding a desired level
> of resale prices and to deal only with retailers who
> independently decide to follow that policy. A
> manufacturer also is permitted to stop dealing with a
> retailer who breaches the manufacturer's resale price
> maintenance policy. That is, the manufacturer can
> adopt the policy on a 'take it or leave it' basis. "
> 
> Based on this second paragraph, I guess you can sell
> the car cover for whatever you want... and the
> supplier can choose to no longer send them to you.
> 
> --- timnagin <timnagin@xxxx> wrote:
> 
> > 
> > It depends on the manufacturer.  They can set an
> > MSRP as a guideline, but
> > you are usually free to go a little higher or lower.
> >  Some will state that
> > if you price it too low, it will reduce it's
> > quality.  Yes, I know Dave :)
> > Another way to say it is the perceived quality of
> > the item.  All things
> > being equal, a $60.00 car cover can't possibly be as
> > good as a $99.95 car
> > cover.
> > 
> > Greg
> >
> 
> 
>             
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