<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">MSRP is a totally meaningless number invented by factories (and sometimes dealers) to make it seem like their discounts or trade allowances are better than they really are. The number has absolutely no other significance. The same holds true in cars, boats, busses, washing machines and so forth. </div></BLOCKQUOTE>
That is true for now, but a Supreme Court ruling earlier this month may change that and put some teeth in the manufacurers pricing.
WASHINGTON "” The Supreme Court ruled Thursday in a 5-4 decision to make it easier for manufacturers to require retailers stick to minimum advertised prices (MAP), a move that could raise prices at retail, the dissenting justices said.
The high court's decision overrules a previous anti-trust statute that said MAP agreements were illegal. In the future courts will decide on a case-by-case basis whether the MAP agreement violates anti-trust laws.
"It is a flawed anti-trust doctrine that serves the interests of lawyers," Justice Anthony Kennedy wrote, adding the old legal standard required "manufacturers to choose second-best options to achieve sound business objectives."
Dissenting justices said the ruling would likely drive up retail prices."..........
"Richard Glikes, executive director of the Home Theater Specialists of America buying group, commented, "I've been around long enough to remember [the] Fair Trade [law]... which was actually a wonderful situation for retailers since it guaranteed full margin on the product. It created a very orderly market and the benefit was that everyone played on equal playing field."
Glikes backed the Supreme Court decision as "a good thing for retailers." "
And a bad thing for consumers! See full article here SC Ruling