Nikon Pricing Policy

Started Oct 13, 2011 | Discussions thread
Reilly Diefenbach
Reilly Diefenbach Forum Pro • Posts: 11,666
Re: Nikon Pricing Policy

Yes, and it works this way: A retailer can sell a product for any price they wish, but the manufacturer is under no obligation to supply more of said product if they discover a UMRP (Unilateral Minimum Retail Price) violation. This has been argued in the Supreme Court and upheld: United States v. Colgate & Co. The finding was that any company can do business with any other company or not as they see fit. No contract directly controlling price is ever used.

There are any number of products that are subject to this policy, including virtually all shoes, all power tools, all musical instruments, Bose, high end appliances, and so on. It helps keep the quality high and the store in business.

As we saw with VCRs, price cutting down to $28 was not all that great for the quality. Microwaves are another case study of the race to the bottom, going from a fifteen year product to being all disposable junk clogging up the landfills after a few years. Anyone want to buy a $499 microwave that will last fifteen years? The non-UMRP market says no.

In Nikon's case, keeping the quality high is absolutely critical. They need not to be forced to sell cheap crap by downward price pressure or they'll wind up in the toilet.

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