Jennifer E. Thomas (j3nny3lf) wrote,
Jennifer E. Thomas
j3nny3lf

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Minimum Advertising Price police?

http://online.wsj.com/article/SB122835660256478297.html?mod=yhoofront

Here is what I do not understand about MAP pricing.

The manufacturer makes its same profit per item sold to retailers, regardless of what price those retailers then set as the final selling price.

So why the HELL do they care if, for example, Target sells a TV for $100 less than the manufacturer thinks it should sell for? Their bottom line doesn't change, only Target's does.

Can anybody explain this to me?
Tags: money, shopping
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