“What Is Minimum Advertised Price?”

Minimum Advertised Prices prevents retailers from advertising prices beyond a certain pointI just read an interesting story on USAtoday.com that I thought might be of interest, especially anyone who shops online. Well OK, that’s just about all of us. I know that quite a few times I have been looking for something on Amazon – I think the last time it was a Jansport daypack – when I have had to add the item to my “cart” in order to find out the price.

I thought it might just be some marketing technique – “prices to low to show!” – but it turns out that retailers have to abide by an agreement with some suppliers that they will not advertise the company’s products below a certain price. This is in part to help brick & mortar stores to be able to survive the relentless battle with online retailers, and I suspect that there is an element of brand protection involved too. How often do you see Apple products heavily discounted?

Anyway, the bottom line is: don’t write it off as a marketing gimmick – it’s worth putting the item in your cart to find out if the price really does make it a good deal. Read the article here.

Philip

One Comment

  1. Interesting news. “Brick and Mortar” businesses are also behind several states like Georgia forcing online businesses to charge sales tax. My boyfriend is an Amazon and Ebay seller. He also believes there are forces at work that are making Amazon ban some DVDs and music sales.

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