GX7 is already $100 off at adorama

Started Sep 29, 2013 | Discussions thread
Eamon Hickey
Veteran MemberPosts: 3,166
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MAP is the old, weaker mechanism
In reply to freeheels, Oct 1, 2013

freeheels wrote:

Actually, it is "minimum advertised price" (MAP).

No, MAP is the resale price maintenance mechanism that was used before the 2007 U.S. Supreme Court ruling. It's a weak mechanism -- manufacturers only have the power to withhold advertising bonuses if dealers break the MAP price. I'm sure there are some companies that still use it, but the 2007 court ruling opened the floodgates to a much stronger mechanism, often called "uniform pricing".

Uniform pricing, which was automatically illegal prior to 2007 and now is not automatically illegal, requires the dealer to adhere to the manufacturer's suggested price or the manufacturer will revoke the dealer's authorization (i.e. stop selling to the dealer) altogether (although usually not on the first violation).

The difference is the much stronger punishment -- revoking the dealership.

This is in response to aggressive internet discounting causing havoc amongst brick an mortar stores.

MAP came into being long before the Internet -- it was already well-established in the camera industry when I went to work for Nikon in 1991.

If you're interested in the long tangled history of resale price maintenance chicanery, Wikipedia has an okay article on it (although it contains several mistakes, including the idea that MAP was illegal before 2007. It most certainly was not -- I enforced MAP pricing for Nikon every day for almost 10 years in the 1990s, and thousands of companies used it.) The resale price maintenance story really begins in the U.S. in 1911, with court rulings related to the Sherman Anti-Trust Act.

http://en.wikipedia.org/wiki/Resale_price_maintenance

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