"We can't adevrtise our low price, you have to e-mail us" - is this true?

Discussion in 'Archived Threads 2001-2004' started by MickeS, Jan 14, 2002.

  1. MickeS

    MickeS Producer

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    I clicked on the link to http://www.projectorinfo.com on the front page of HTF, to see what they charge for a Sony projector. Next to the projector price, it says to click for the price, and then a window pops up saying this:
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    Some of our product manufacturer partners enforce a Minimum Advertised Pricing (MAP) policy. As an authorized dealer we cannot advertise a price lower than the manufacturer's chosen MAP price. Our manufacturer partners may terminate any dealer that does not comply with their MAP pricing policies.
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    Is this really true, or is it just a way to get you hooked? I really find it hard to believe that they are not allowed to advertise whatever price they want, as long as they pay Sony the same price as everyone else. Or is this some scheme where they've bought from a third party?
    /Mike
     
  2. Scott H

    Scott H Supporting Actor

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    That is true.

    Sometimes when you put the item in your shopping cart the price will display in your shopping cart, thus not having to email the price. There are actually some items at Amazon for which they can't display the price, with the same explanation. And you can sometimes see the same explanation given in advertising circulars in Sunday papers, and it's long been that way with photographic equipment from the major NY and LA shops.
     
  3. MickeS

    MickeS Producer

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    Yeah, I've seen it a lot too, but that doesn't necessarily mean that it's true...

    /Mike
     
  4. Don Black

    Don Black Screenwriter

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    It's true in the sense that manufacturers could quite dealing with a retailer that doesn't honor MAPs. Also, a manufacturer generally ties market development funds and cooperative advertising dollars to enforcement of MAPs. These practices are regulated by the FTC and manufacturers are often sued by the government for unfair business practices since it is basically price fixing. About 2 years ago, the FTC won a case against the RIAA for these types of practices. They required the labels to remove the MAP requirement.
     
  5. Hugh M

    Hugh M Second Unit

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    I believe there is a standard for this somewhere..and in some cases it makes sesne.

    but it is USED to get somewhat of a commitment from you. abused would be a better word.

    J&R is ridiculous for this..they seem to do this ALOT..perhaps SONY is one of the more strict manufacturers. But my guess is that being the most expensive models that J&R carries in alot of categories, they are successful in keeping interest by not showing the price when comparing to others.
     
  6. Jon_B

    Jon_B Screenwriter

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    I think Sony is one of the more strict manufacturers. For example the Sony VPL-VW10HT was offered by many places on the web below the msrp. Rumor has it that many of those websites that were guilty of this did not get a chance to sell the vpl-vw11ht.

    Jon
     
  7. Don Black

    Don Black Screenwriter

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    I think we're confusing MAPs with authorized vs. unauthorized dealers. Sony's whole pitch is that they want to carve out a slice of the online market for themselves and a select group of dealers (e.g., 800.com) with whom they've cut sweet profit sharing deals with. B&M authorized dealers are not the same as online authorized dealers. So, if an unauthorized online dealer sells you a Sony product, Sony could both refuse to service the product and/or punish the unauthorized dealer with poor terms and inventory allocation.
     
  8. BrianW

    BrianW Cinematographer

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    Real Name:
    Brian
     
  9. Tom Johnson

    Tom Johnson Stunt Coordinator

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    MAP stands for minimum advertised price. There is nothing illegal about it and it has nothing to do with price fixing. Some retailers are using such wording to make you think they are the only ones doing something special for you. Dealers can charge whatever the like for the product. Many times dealer advertisments are actually paid for by the manufacturer. Since the manufacturer is paying for the ad they establish a minimum price it can be advertised for. Now a dealer is still allowed to charge even less on the ad, however based on the agreement with the manufacturer, the ad costs will only be reimbursed if it is listed at or above the MAP.
     
  10. Don Black

    Don Black Screenwriter

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    ...which sounds innocent enough except that the ad dollars being reimbursed total $50+ billion each year worldwide (co-op dollars + MDFs).
     
  11. Scott H

    Scott H Supporting Actor

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