The purpose of MAP and how it really helps us

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brad
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Sharpie wrote:
brad wrote:
Lazy-R-us, Walmart has lower prices, not higher prices.

I have never seen a Walmart drive up prices for the consumer, in my experience it is always the opposite, and why is the store hated by the left and favored by the working people always the example of evil, why not Home Depot, or Costco, or Target, or Albertsons, or Vons?

When Wallmart took over Asda (one of our big-four supermarkets) they tried to use their tactics here. They stacked the shelves with unwanted poor quality cr@p and played stupid pricing games to try to deceive the consumer (was never going to work here). They even replaced all the signage with “Asda, a Wallmart company”.

That didn’t play too well here.

The signs are long gone and the PR people do their best to avoid all mention of the true ownership.

Wallmart is seen here as an example of a lot that is wrong with USA big business.

Their personnel policies are also anathema here.

Once the mega USA multinationals are forced to pay their due tax in our territories instead of creaming it off back home, (a subject of hot debate here), expect to see yet more growth in UK/EU GDP, and less in the USA.

I think people can read the responses to your post, and see that your politics led you to make that misleading and inaccurate post, you should have pointed out that it was just your own personal view, about Britain’s second most popular grocery store, which is owned by Walmart.

Not what we have but what we enjoy, constitutes our abundance.

bugsy
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robo819
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Maybe one day we will come to our senses

That when we’ll see there’s no difference in our differences

Then we can mend those broken fences and get along

So lets get along, any other way just has to be wrong

Its not there world or my world, cause its our world

So lets get along and learn to live in peace

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DavidEF
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Sharpie wrote:
Sorry about that little diversion. Sad

Now back to MAP:

Here is an interesting historical perspective about why it became illegal in the UK in 1964:

PS: supermarkets do come into it too, but lets try to ignore them…

http://eprints.lse.ac.uk/22406/1/39_98.pdf


So, if MAP is accepted as being the same as Retail Price Maintenance, this paper clearly supports what the OP says about how MAP protects competition.
Quote:
The Resale Prices Act of 1964 banned RPM. This Act was fiercely contested within the Conservative Party, for opponents of the Bill feared that the numbers of independent retailers would dwindle so undermining traditional areas of support for the Party. While the fears within the Conservative Party were well grounded – the Act helped the long-standing process of concentration within the retailing sector – this paper argues that to view the effect of the Act only in relation to the competitive struggle between large and small retailers seriously underestimates the long-term significance of the Act. *

*emphasis mine

Whatever else you believe about MAP, if it protects competition, isn’t that at least one good thing that can be said about it?

The Cycle of Goodness: “No one prospers without rendering benefit to others”
- The YKK Philosophy

brad
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Sharpie, only you could, or would, confuse an individual pointing out your anti-Americanism, with the United States Government accusing you of being anti-American and compare America to the Soviet Union.

Thanks for sharing with us with such passion, where you prefer to buy your groceries, and why you resent so much, so many of your fellow British subjects preferring to buy theirs at an American owned store.

Not what we have but what we enjoy, constitutes our abundance.

kuoh
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It was contested, but not proven that the abolition of RPM/MAP would reduce competition and drive out small businesses. It was originally envisaged to facilitate larger production runs and better product quality for even small manufacturers, as well as encourage retailers to become better informed about the price managed product and thus advise / steer consumers toward purchasing those products and provide better after sales support should issues arise. However, I don’t see much of that happening even today, other than the option to return DOA or unsatisfactory products within a narrow return window. Your typical electrical/electronic product can fail outside of the retailer’s return window, but well within the manufacturer’s warranty period and typically your only option is to return the product to the manufacturer at your cost and receive a replacement product which still may not function properly. Ofcourse you can opt to pay for an additional warranty to the retailer for the privilege of exchanging at the point of purchase, but that applies equally to MAP and non-MAP products. So where is the benefit we consumers supposedly derive from a MAP product?

In the conclusion, the author states, “At the time these relationships seemed collusive and restrictive”, and now over 50 years later, it still doesn’t seem any different to most people.

“Conclusion: 1964 was indeed a turning point or manufacturers in their relationship with retailers. This
was an outcome envisaged and encouraged by a government with a zeal for competition,
which correctly identified rpm as the fulcrum of a series of economic relationships
covering wide swathes of British manufacturing. At the time these relationships seemed
collusive and restrictive: modem analysis might be more willing to endorse the views of
the minority of economists at the time who saw rpm as a form of vertical integration
which encouraged efftciency and competition”

KuoH

DavidEF wrote:
So, if MAP is accepted as being the same as Retail Price Maintenance, this paper clearly supports what the OP says about how MAP protects competition.
Quote:
The Resale Prices Act of 1964 banned RPM. This Act was fiercely contested within the Conservative Party, for opponents of the Bill feared that the numbers of independent retailers would dwindle so undermining traditional areas of support for the Party. While the fears within the Conservative Party were well grounded – the Act helped the long-standing process of concentration within the retailing sector – this paper argues that to view the effect of the Act only in relation to the competitive struggle between large and small retailers seriously underestimates the long-term significance of the Act. *
*emphasis mine

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