iPods and the MSRP

[ChaoZ]

There was a discussion in my Marketing class today on how Apple manages to enforce the MSRP on the iPods. I know it's actually illegal for a company to force the MSRP to retailers. The discussion never really explained how Apple does it.

 

[MysticWar]

Maybe they do what Oakley does for their products. From what I've been told by Oakley retailers, if you sell their products under the MSRP they won't sell their products to you anymore. Many department stores won't even let you use their coupons on Oakley products.

 

[GagHalfrunt]

Originally posted by: MysticWar
Maybe they do what Oakley does for their products. From what I've been told by Oakley retailers, if you sell their products under the MSRP they won't sell their products to you anymore. Many department stores won't even let you use their coupons on Oakley products.

Exactly. Once you buy the product from the manufacturer or distributor you can give it away or sell it for anything. But by failing to follow the rules you lose the account. It's a good deal for the retailers, they're protected from a pricing war because they know the guy down the street isn't going to undercut them. So they can sell their iPods at $199 and make a profit or they can not sell them at all and make nothing. No brainer.

 

[spidey07]

You can't force them to charge MSRP.

You can however not sell the products to people who are caught selling below MSRP.