You had said that McDonald’s should be able to set the prices to be the same in all of “their” stores. But, the stores aren’t “theirs”, only the product is. Flashlight manufacturers set the price for their own brand, not for the market. If they all got together and set a market price, that would be price fixing. But, they don’t. They compete with each other. What they don’t want is a “cheap” re-seller under-cutting their other re-sellers and throwing them out of balance.
Here’s an example. Let’s say you and I are both Nitecore re-sellers. We both get the Nitecore products for the same price and we both sell them at a profit. Now, let’s say that you have a local store-front where people can walk in and look at what you have. They can ask you questions about the products and get recommendations. If they have a problem after the sale, they can come back to you and you will make it right. All of this excellent customer service is a valuable resource to your store’s visitors, so they keep coming back to buy from you. They trust you.
Now, what if I was a cheap re-seller who had no store-front, and no physical place people could go to shop. I just ran an on-line store. On my website, I could make all the same promises of customer service that you make. Except that customers would have to contact me by e-mail if they had a complaint. And, since Nitecore makes nice products, I get few complaints. Because of that, the complaints I do get, I can treat with disdain if I want to, and it won’t much affect my business. So, really, I don’t need to provide good customer service. With all of this cheapness on my side, I’m able to sell the products for $15 cheaper than you and yet still make more profit than you do.
Is it fair? Should I be rewarded for being able to make money this way? Over time, if left unchecked, I will run you out of business. All’s fair in love and war, right? The “better” seller wins out and everybody gets cheaper flashlights. Yay!
This is an example of just one of the realities of doing business in this world. There are a lot of variables from shop to shop, from vendor to vendor, from place to place. A MAP policy in place helps to make sure the variables don’t eventually force the wrong person out of business because someone else can do it cheaper. And, of course, if the MAP price is too high, everyone still has a choice of switching to a different manufacturer whose MAP price is lower, or even to a manufacturer who isn’t enforcing MAP on their products at all. No price fixing. Competition is still there. But, the manufacturers using MAP are doing so to protect their re-sellers. From their perspective, it actually has very little to do with you as the end consumer.