Restated question

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Folks:
From the other side of the counter....there are often changes in cost during
the life of a product (especially products that aren't selling) that are
often done with no change in the published MSRP (a classic was about a year
ago Pioneer had an MSRP posted on their web site for the Pro 1120 HD plasma
at about $13,000.00 when they were selling out here in the real world for
about $7,500.00). There is also the reality about pricing that on any given
day there is a dealer somewhere that has decided that he has something in
his store that absolutely has to leave the store NOW so no price is too low.

I added my comments back in below-
Cheers,
Joe

-----Original Message-----
From: HDTV Magazine On Behalf Of
Thomas B Kemp
Sent: Monday, March 06, 2006 8:59 AM
To: HDTV Magazine
Subject: Restated question

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Anthony:

Apologies for so poorly stating my questions/assumptions. What I was
really asking is if my assumptions were correct that:

1) you are prevented from selling the set at a price below that established
by the manufacturer? At least prevented from advertising it below the
manufacturer established price.


>You can sell merchandise at any price that you would like. The
>manufacturers typically have "minimum advertised price" that is the lowest
>price you can advertise and still have them reimburse/share the advertising
>costs


2) if you purchase the set from an Internet retailer who is not an
authorized dealer is your warranty not valid? Denon claims that they will
not honor any warranty for any receiver that was purchased from a
non-authorized dealer.

>The idea is that the company has real live dealers that are bound to a set
>of conditions regarding displaying, demonstrating and supporting their
>products to you the end user. If you buy it from someone that they don't
>sell it to the manufacturer has no idea whether the units are new/used
>(after all they didn't sell it to them) or whether they are U.S. versions.
>The U.S. Vs. foreign units are a problem for the company here in the states
>as they made no money from the sale to a dealer which is what they use to
>fund their operations here in the states.


3) Can you sell the set below the established MSRP IF you do not advertise
that you are willing to do so?

>Absolutely, you can even advertise that you intend to discount it.

4) for the two HD sets that I have I purchased, I purchased both at
discounts below any sale price and they were new, current models from
boutique retailers. One was a $1,000 discount. I doubt that this well
known retailer would compromise their dealer status with Sony over just one
or two sales. So, there must be a good bit of flexibility on the dealer's
part to adjust the price in competitive situations. I guess that I was
just looking for confirmation that the agreement with the manufacturer does
allow that kind of flexibility.


>Manufacturers cannot limit what you sell it for, they can however tell you
>upfront what they will do to you if you sell an item below a certain price.

5) my assumptions about manufacturer established prices remind me of the
old, old fair trade prices that were eliminated, supposedly, a long time
ago. It seems to me that we still have the same situation.

>Fair Trade was actually much more restrictive that any current program that
>is out there.


Thanks,
Tom

Be slow to attribute to malice what can be simply explained by ignorance or
stupidity.




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