Someone explain MAP and how its legal?

[GT]

I see this fine thread:

http://www.pbnation.com/showthread.php?threadid=867066

I was unaware that dealers were forbidin to advertise a certian price. Isn't this just another form of price fixing?

[WenULiVeUdiE]

They want to control the market. Why go straight to ICD when you can get it from some one else for $20 cheaper?

MAP pricing has always been alittle confusing.

[Muzikman]

MAP = Minimum Ad Pricing.

This is the price at which a dealer can not post the price any lower. This is why on a lot of web sites you see "Email for lowest price" or "Price too low to list". This prevents dealers from under cutting eachother and ultimatly putting some dealers out of business which in turn hurts the profit of the mfg.

It's not price fixing.

[Steelrat]

I think price fixing implies coordination between multiple manufacturers. Each manufacturer sets their own MAP. Its legal.

[Lohman446]

It is considered cost fixing (and thus illegal) for a manufacturer to say - if you sell this below $XXX I will no longer sell to you, or to take action against you fro selling below a recommended price

It is not illegal for them to take action against you or refuse to sell to you if you advertise below there minimum advertised price.

[Chronobreak]

ie an ion cant be sold for less than $285 i beleive...

so selling it $265 wil get you into BIG trouble....maybe..


i think they fixed the problem already..HOWEVER it seems if you PM certain individuals you can stil get things below that price...

[JoshK]

ie an ion cant be sold for less than $285 i beleive...

so selling it $265 wil get you into BIG trouble....maybe..


i think they fixed the problem already..HOWEVER it seems if you PM certain individuals you can stil get things below that price...

They cant say you cant sell them below a certain price...they just cant advertise it.

[Lohman446]

ie an ion cant be sold for less than $285 i beleive...

so selling it $265 wil get you into BIG trouble....maybe..

An Ion can be sold for whatever the owner wants to sell it for and SP may take no action against anyone selling them at whatever price. Taking action against a retailer who sold them below that number, without any other cause for taking action, would put SP in violation of certain legal statutes and could be investigated federally.

However, you are [verbally] contractually obligated when purchasing Ions from SP to not advertise them below $285 or whatever the number is

[kruger]

Smart Parts most certainly can take action against a retailer for not following the MAP policies they set. They dont have to provide that retailer with any of their products for future sale. If a retailer does not follow the agreements that they made with Smart Parts or their distributors, then they can cut them off from ALL future shipments and that is a powerful tool. Even if you dont agree with their policies, Smart Parts is still a major player in the paintball industry and their products do generate lots of income for the retailers. Money talks, and if you cant get the products that the people want, the buyer will go where they can get them.

[Lohman446]

Smart Parts most certainly can take action against a retailer for not following the MAP policies they set. .

Your right, for not following minimum advertised price policy. However it would be illegal for SP to cut off sales because you sold them for less, as long as you did not advertise them for less. YOu would, as the retailer, have the basis for a civil suit unless SP came up with another reason to cut off your wholesale account (easily done).

I know this, I know this in this situation. SP called because we had Ions advertised too low online and asked us to follow MAP - they specifically said we could sell them at whatever we wanted, but we had to advertise them at MAP or without price.

[Muzikman]

A company will let you sell what ever you want for what ever price you want. It's you that is taking the hit.

Company A sells Store B a widget for $100
MSRP is $125
MAP is $115
You sell it for $110. You now only made $10 on that sale and that doesn't take into account any overhead you have.

This is how Walmat makes so much money and keeps their prices down. They can sell 1000 widgets for $110 and make $10,000 where as a smaller company who can only sell 500 has to sell them at $120 to make the same $10,000.

[Halliday]

Where can I find these paintball widgets?

[Enemy]

This is how Walmat makes so much money and keeps their prices down. They can sell 1000 widgets for $110 and make $10,000 where as a smaller company who can only sell 500 has to sell them at $120 to make the same $10,000.

they also pay thier employees less and offer crap for benifiets!! but yeah!

[XSSPL]

Jesus Christ - gotta love the internet. 'Takes 1 person to originate, 3 to answer with viable solution and/or counter and 15 to chase themselves around every variable known tree in the thread universe.

thank you, come again... who's next?

[Automaggin2]

they also pay thier employees less and offer crap for benifiets!! but yeah!

Yea, but Wal Mart is the number 1 employer in the United States, and offers a lot of jobs to the eldery, mentally retarded, and people on welfare. Without wal mart, our unemployment rate would be a little higher then it is today.