jacksatlanta:While this case did not really address MAP policies, it does address minimum resale pricing, and with the affirmation of a Mfg's right to set Minimum resale prices it this case has essentially said that a reseller will now have a MAP because the lowest price that will now be able to be advertised is the Mfg's minimum resale price. With this case MAP and MRP become essentially the same thing. My question is in an industry as specialized and as small as the Scuba industry is, do you think the Mfg's will now use this ruling to "force" prices up as a whole and now that they have a court ruling backing them become more aggresive with dealers selling below the Mfg's MRP or will prices go down as and the market segment into MRP Mfg's and non MRP Mfg's or will everything stay the same? I ask and wonder because it seems everday more Mfg's, even 2nd tier Mfg's are supporting MAP and MRP policies.
If this ruling bolsters the confidence of the couple of remaining scuba manufacturers that subscribe to vertical price controls, it will simply hurt dealers more and more. The scuba market, like many other markets, is already segmented by the emerging technology of internet retail sales. The small dealer that does not use alternate methods to expand the sale market will only be in a worse position if MARP policies are strengthened.
While a couple of scuba companies CLAIM that they are strict on the inforcement of their MARP policies, I think you will find that the reality is quite different. My store was disqualified by a large manufacturer about 18 months ago for violation of the MARP policy. I think you will find that this type of action against a retailer is EXTREMELY rare in the scuba industry.
Phil Ellis