Doesn't the manufacturer set the suggested retail price to help protect the brand, and offer some assurance to the dealer that the investments made by them are somewhat safe?
For instance a Wilson dealer pays 40 to 50% of MSRP. Wilson expects the dealer to maintain a certain territory and not discount the speaker more than say 10% of MSRP.
This keeps the brand strong and the dealers investment worthwhile and all parties are drinking wine and kissing.
If a dealer goes rogue and starts ignoring territory and selling speakers at 40 to 50% off MSRP (Still making many thousands) this puts all the other dealers and Wilson at risk. The rogue dealer becomes dealer of the year until his speakers start showing up all over fleabay and Agon at cheap prices.
In my mind this is more of why a MSRP price exists. I agree with the above though, that it can help determine the age of a product.
For instance a Wilson dealer pays 40 to 50% of MSRP. Wilson expects the dealer to maintain a certain territory and not discount the speaker more than say 10% of MSRP.
This keeps the brand strong and the dealers investment worthwhile and all parties are drinking wine and kissing.
If a dealer goes rogue and starts ignoring territory and selling speakers at 40 to 50% off MSRP (Still making many thousands) this puts all the other dealers and Wilson at risk. The rogue dealer becomes dealer of the year until his speakers start showing up all over fleabay and Agon at cheap prices.
In my mind this is more of why a MSRP price exists. I agree with the above though, that it can help determine the age of a product.