GX7 is already $100 off at adorama

Started Sep 29, 2013 | Discussions thread
MichaelKJ
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Re: the rules did change
In reply to freeheels, Sep 30, 2013

freeheels wrote:

Eamon Hickey wrote:

Laszlo13 wrote:

Well I wondered about this. Decades ago, there used to be variance in retailers' prices. I remember B&H, Adorama, etc., being much cheaper than in store prices (and there was a ton of other New York mail order shops that were even cheaper). The something happened in the past 10 years, because we've seen single pricing throughout the US for camera products.

Something did change in the U.S. -- in 2007 the Supreme Court ruled that minimum retail price maintenance agreements were not automatically illegal in the U.S. anymore. The nuances are a little complex, but here's a good NY Times article on the ruling:

http://www.nytimes.com/2007/06/29/washington/29bizcourt.html?_r=0

In the wake of that ruling, many -- probably most -- camera company subsidiaries in the U.S. have instituted uniform pricing policies, meaning retailers are not allowed to deviate from the manufacturer's suggested price on items that are covered by the policy. (Typically, not every product in the company's lineup is covered.)

Companies in many, many other industries have also established similar uniform pricing policies.

Actually, it is "minimum advertised price" (MAP). This is in response to aggressive internet discounting causing havoc amongst brick an mortar stores. Stores are free to list above the MAP price, but not below it. The way the search engines work on the internet, large (and aggressive)retailers have to stick to this to compete. I suspect the discount came from panasonic lowering the MAP and maybe discounting the wholesale a bit.

It is not price fixing, but establishing a bottom price that everybody rushes to to compete

Apple and other companies with the clout to do so set prices through two tactics: 1) a tiny wholesale discount to retailers, and 2) giving substantial monetary incentives to retailers who only sell at the MAP.

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