Price fixing?

[telecopter]

"Knowledge Suck"...? :knitting

http://futuremusic.com/blog/?p=3548

[skylabfilmpop]

At least in my area GC is sunk. All the local small chains and Mom and Pops are way undercutting GC's prices on most everything since they went to a no haggle policy. If you are not hip to that check it out you can get a better deal on most things outside of GC these days. That said yes MAP is a form of price fixing and retailers fear the repercussions. I use an east coast based pro audio store who give great prices but the proprietor is so paranoid that he actually vets/screens you for a referral when you call, making sure you are not a supplier calling to check in on him. Go get em feds!

[mark norwine]

LONG overdue, IMO.

[loudboy]

I use an east coast based pro audio store who give great prices but the proprietor is so paranoid that he actually vets/screens you for a referral when you call, making sure you are not a supplier calling to check in on him.

His initials wouldn't be "CC" would they? Great store, great guy. I can see why he's paranoid, w/the prices and service he provides.

I can't believe that MESA/Boogie isn't in that article, too. They pionered the price-fix, IMHO. No discounts, or you lose your dealership.

[telecopter]

His initials wouldn't be "CC" would they? Great store, great guy. I can see why he's paranoid, w/the prices and service he provides.

I can't believe that MESA/Boogie isn't in that article, too. They pionered the price-fix, IMHO. No discounts, or you lose your dealership.

Good point about Mesa....I always thought that that stunk. Now that there is way more competition in amp manufacturer selections, you would think that Mesa would stop doing that. Business must be good. :knitting

[kurtsstuff]

Soon there will be no storefronts left. Everybody thinks that a Music Store owner should not realize a profit of any kind or an unlivable one at best. Pretty damn sad...

[Johnny V.]

If anyone thinks retail margins at MAP pricing is good, they need to take another look. Good example-Boss pedals. On some models we make about $15.00 on a $100.00 item.To get this pricing we need to buy in about $4000.00 worth of product-if we don't do that our margin is even worse. Many margins at map on for example a $1000.00 item are around $200.00 or 20%. Most music retailers aren't exactly getting rich.............

[killerburst]

That article seems to suggest that MAP dictates the selling price of an item. It does not. It only dictates what price an item may be advertised for. Call any dealer and he can tell you any price he wishes without violating his dealer agreement, as that is not advertising. Dealers can do many things in their marketing to be more competitive without violating MAP policies: package bundling, call for price, etc. Web dealers already have an advantage, as they do not have to charge sales tax out of state, and can run operate with much lower overhead. Manufacturers institute MAP policies to protect dealer margins and ensure that there is enough profit in their line to attract dealers. Without MAP, a single dealer blowing stuff out could conceivably cost a manufacturer dozens of valuable wholesale accounts.