MAP and NOMAP are two equal products being wholesaled at identical prices. A retailer buys MAP for resale, knowing his retail price will not be undercut by a competitor. He also knows that if he also offers NOMAP at the usual lower price set by the market competition he will make less profit per unit than by selling MAP but he will move more units and probably end up with the same net income. And he know that doing this would result in reduced sales of MAP because in comparison it would be seen as overpriced by his customers because it is overpriced- NOMAP sales being higher proves that. So most retailers would either choose to not sell NOMAP so as to not hurt their MAP sales or to not offer MAP so they don’t get stuck holding boxes of MAP which does not sell.
I fail to see an advantage unless every wholesaler is like MAP in setting guaranteed prices. It either influences the retailer to not sell NOMAP-type items or restricts his product line to MAP-like items only, and neither is good for the retailer seeking to expand their product line or consumer who either loses buying choices or ends up paying more than they needed to for a given product. Drop-shippers won’t be harmed but those retailers with an investment in inventory will be, which discourages a whole segment of marketers from entering the business. No matter what, the MAP wholesalers and retailers will sell less product than they could so they lose from the practice, not gain from it.
There’s the simple logic of this, no emotions or feelings involved. Show me where I am wrong Bugsy36. Educate me for I do not like to be stupid and I crave truth.
Respectfully,
SawMaster