Huh?
Can someone explain this to me? I’ve been doing some reading about last month’s U.S. Supreme Court ruling relating to setting prices (although I haven’t slogged through all 55 pages) and I’m totally confused. NPR’s brief article on the subject is titled, “Supreme Court Ends Ban on Price Minimums”. CNNMoney’s post had a few more details, stating that, “The Supreme Court on Thursday overturned a nearly 100-year-old precedent that some price-setting agreements between manufacturers and retailers are automatically illegal under federal antitrust law.” but I’m still lost. Does this mean the end of close-out sales at retail stores and fabulous deals on the internet, or am I just completely missing the point?
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July 18th, 2007 at 6:44 am
I need to go read up on this, but my gut reaction is that it is directed at the
anti-ChristI mean Wal-Mart and how they pressure companies to give them a low ball price, below the manufactures costs.The retailer is so huge the manufacturer feels compeled to agree, so they can have their products in the world’s largest retailer.
July 18th, 2007 at 6:59 am
I just went looking and i found an article that I think explains it best. From the sound of it, it will allow more competition with lower prices. Meaning Wal-Mart will benifit…take a look at:
http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXkxOTcmZmdiZWw3Zjd2cWVlRUV5eTcxNjc2NzUmeXJpcnk3ZjcxN2Y3dnFlZUVFeXk3
July 18th, 2007 at 2:01 pm
Prince of Thrift, you are completely wrong and you are letting your personal feelings about walmart get in the way.
The ruling was first established to prevent price fixing between manufacturers and retailers–that is, manufacturers were dictating the prices retailers could sell their goods. however, retailers have been getting around the ruling anyways by using MSRP. The “suggested” portion of the manufacturer’s suggested retail price, is the key. the manufacturer suggesting a price rather than dictating a price. The MSRP is a fictitious number that manufacturers suggest its retailers to sell at in order to make what it feels is a justifiable profit. some manufacturers have increasingly put pressure upon retailers to maintain the line of MSRP without discount, albeit it is against the law to do so.
the lifting of the ruling will undoubtedly allow retailers to justify higher prices. this is contrary to what you’ve stated about walmart. if anyone thinks this will allow more competition with lower prices is crazy. the manufacturers used this argument as a way of overturning this law.