(02-22-2018, 09:18 PM)srlevine1 Wrote: You will find that many retailers actually support the higher prices because it helps hold a profitable margin and prevents the manufacturer from disintermediating the retailer with a cheaper, direct-to-user price. You just can't win when it comes to mandated health items.
Of course, the retailers want more profits... they aren't in business because they want to be
As for manufacturer direct sales, that is the norm and far from being an exception that applies to health care.
Most manufacturers simply won't sell direct. They are partners with their distributors and dealers, they are not in competition with them.
When a manufacturer DOES sell direct, they only sell at full MSRP, with the exception of discontinued items, items that the dealers are unable to move, and in some rare cases, new product introductions where they want to establish a product.
They have non-competition agreements that they will not undercut their retail dealers.
They also have advertising agreements, and if a dealer is advertising in an area there they do not have a physical presence, they are prohibited from advertising below "MAP"... "Minimum Advertised Price". They *can* sell below that price, but they can not advertise below that price. That is why you often see "Call for Price" or "Add to Cart for Price" on products.
These policies and agreements are all put in place to protect the local retail dealers and help prevent one retailer from using their financial position to run other retailers out of business.
Walmart, Costco, Home Depot, Lowe's, and Kroger running family-owned small stores out of local markets is the result of the lack of these agreements.
