Illegal?

[Mark Sottilaro <msottila@mailbox.syr.edu>]

Hey,

As a retail veteran, I've got to call you on this one, Kim.  Selling a
product at any price is not illegal.  Price fixing is illegal.  There
are laws against "dumping" products into a market where the manufacturer
takes a loss to undercut a competitor, but I don't really understand the
complexity of international trade.

Many manufacturers claim that you have to sell their products for a set
price, or suffer legal consequences.  This is false.  The only thing
they can do is pull your exclusive dealership.  When you see a retail ad
that says, "Call for best pricing!" it is usually because the retailer
has a co-op advertising deal with the manufacturer where the retailer
agrees not to advertise the product for a certain price in exchange for
money toward advertising their product.  This isn't to protect the
consumer, but to protect the retailer.

On the other hand, the mark up in retail musical instruments and gear is
actually pretty low.  Often 10-20%.  What retailers do to make money is
to sell accessories, and service.  Large retailers make money on
"volume, volume, volume!"

Mark Sottilaro