MAP (minimum advertised price) is often different from MSRP, but otherwise this comment is correct.
In some industries, like RVs or auto parts, the vast majority of products have a MAP. The manufacturers also have bots that scan the internet for MAP violations, and they’ll blacklist a vendor if they don’t fix the price within a day or two. (Which is really annoying when there’s a false positive and I get blamed for it.)
I think it’s partly so high volume vendors can’t put smaller vendors out of business by just reducing their margins as much as possible, and it’s partly because the manufacturer doesn’t want their products to look like they’re really cheap. Customers feel better about finding a “great deal” on an “expensive” product.
MAP (minimum advertised price) is often different from MSRP, but otherwise this comment is correct.
In some industries, like RVs or auto parts, the vast majority of products have a MAP. The manufacturers also have bots that scan the internet for MAP violations, and they’ll blacklist a vendor if they don’t fix the price within a day or two. (Which is really annoying when there’s a false positive and I get blamed for it.)
I think it’s partly so high volume vendors can’t put smaller vendors out of business by just reducing their margins as much as possible, and it’s partly because the manufacturer doesn’t want their products to look like they’re really cheap. Customers feel better about finding a “great deal” on an “expensive” product.