Supreme Court Rules on Advertised Minimum Pricing

[adwilk]

It's hard to say. It depends on how the market develops. Service is an expense. That is to say that the store that offers service will have higher costs. The store without service will have higher margins. It would be up to the store management to make service a point that increases market share to compensate.

Yet it really doesn't apply much to me. My market's too small. Outside of BB and FS, there isn't much duplication. We just got our second Denon dealer who will offer discounts. The first wants MSRP or close to. I can't pretend to guess which will offer service and which won't. I've only got one B&M for Yamaha, Pioneer, Marantz, Onkyo, etc. Take away the option of internet shopping and I'm fubar'd when it comes to negotiating.

I do suppose the individual markets ultimately dictate what makes any given store stand out, be it the big box or local B&M. But in my mind it stands to reason that any given store has to go to some "expense" in creating an environment where customers are gonna let loose of their hard earned dollars. The service oriented establishments most likely have elevated payroll to compensate a level of professionalism that is associated with top notch customer care. Then, there is the big box shop that ONLY implements major curb appeal and aggressive marketing. Then, of course, you have everything in between. But you have to have some kind of niche to stay in business. At some point, I know my money is better spent when I can be confident that paying a little more means a better shopping experience based on service instead of paying for fancy decorations or tv commercials. I'm convinced that every retailer will have to pay something to keep clientele.

Perhaps I'm reading too much into it and admittedly, my successful retail ventures have always been so due to the absolute best in customer attention. I also almost exclusively support local dealers in virtually everything I buy. I only purchase online products I can't buy locally. Most of that is one of a kind golf products that nobody else here knows how to get their hands on..

 

[BMXTRIX]

When your sales territory and margins are protected, you don't need service to give you an edge.

I think you've just made a HUGE assumption there!

There is no discussion or talk of sales territories, and a protected market is not on the table at all. Companies like Paradigm, and B&W have always freely picked their specific vendors and those vendors are very much in protected localities, and without any MAP, those stores tend to run at or near full MSPR all the time.

The question is whether or not Panasonic or Sanyo, which is available online from dozens of etailers, from Best Buy, from your local 'boutique' dealer can ask for and enforce MAP. In which case there is no protected market and for the same $$$ you can choose to buy online or buy from the boutique, and may see the exact same price no matter which way you choose to go.

Which way then, would a consumer choose to go?

I think it is a very valid point to say that in this type of environment, the enforced MAP would not only favor, but cater to, those companies which are able to elevate their level of customer service to a higher level.

As a small custom dealer, I have zero ability to get Paradigm speakers or B&W speakers. They also, unlike many other companies, don't come up with online stores selling them the way other brands do so easily.

MAP? I'm not sure I disagree with it at all. But, it is ADVERTISED price, not selling price, so the store is still free to sell at whatever price they actually want to sell at.

 

[Davemcc]

I think you've just made a HUGE assumption there!

I don't think it's that big an assumption and I'm glad you brought up Paradigm. It's a perfect case in point the way they defend their exclusive territory. Part of Paradigm's warranty policy is that one dealer does not have to warranty a product purchased at another authorized Paradigm dealer. Thus, if you want to drive 100 miles to get an awesome deal on Paradigms or move across the country, you can find your warranty only valid at the original store. Or you can stay home and pay MSRP from you local dealer. It would appear to me that "denial of service" is as much a part of Paradigm's attempt to gouge the consumer as service. But that's an aside to the main issue of MAP.