LDSs and manufacturers could solve this problem if they really wanted. to.
Instead of demanding a fixed price, how about demanding that certain services actually be provided? That is, instead of creating a sham of value, create real value in your brand!
Take drysuits, for example. Why not, as a manufacturer, require any shop that wants to carry your brand to (1) have a pool or dive location at the store for demo/fitting purposes, (2) carry some amount of STOCK in your suits, (3) have an active rental program with a certain mix of suits, and (4) require the dealer to provide the rental suits at either a low or zero cost to customers while warranty repairs are conducted on a customer's suit. Then drop the bogus price restraints.
Now the factory might have to subsidize the last of these, and that's only fair, given that the reason for the cost on the shop in this case is THEIR failure. But the rest? No.
They're "soft costs" and thus drive up the minimum price someone can sell at and remain in business. However, they create REAL value at the same time! Instead of the sham of value presented by the claim of being "better", we now have an objective, level standard of service that dealers MUST meet as a minimum to carry the brand.
At the same time you solve the cutthroat pricing problem.
Of course this requires that manufacturers actually require their dealers to create and maintain value in their brand, instead of foisting a scam off on their customers!
Instead of demanding a fixed price, how about demanding that certain services actually be provided? That is, instead of creating a sham of value, create real value in your brand!
Take drysuits, for example. Why not, as a manufacturer, require any shop that wants to carry your brand to (1) have a pool or dive location at the store for demo/fitting purposes, (2) carry some amount of STOCK in your suits, (3) have an active rental program with a certain mix of suits, and (4) require the dealer to provide the rental suits at either a low or zero cost to customers while warranty repairs are conducted on a customer's suit. Then drop the bogus price restraints.
Now the factory might have to subsidize the last of these, and that's only fair, given that the reason for the cost on the shop in this case is THEIR failure. But the rest? No.
They're "soft costs" and thus drive up the minimum price someone can sell at and remain in business. However, they create REAL value at the same time! Instead of the sham of value presented by the claim of being "better", we now have an objective, level standard of service that dealers MUST meet as a minimum to carry the brand.
At the same time you solve the cutthroat pricing problem.
Of course this requires that manufacturers actually require their dealers to create and maintain value in their brand, instead of foisting a scam off on their customers!