Have you ever been wondered why an iPad is the same price at every.single store? Or why you never see an xbox on sale? Well it is because of wholesale agreements. Lately, I have noticed a growing movement toward the idea that retailers can offer their products at whatever price they chose. This is simply not the case.
Reputable brands, like the ones that Simple Baby carries, want to support their retailers. In addition they do not want to devalue their products. They ensure both things happen by instating MAP or Minimum Advertised Pricing. Simply put, when a retailer signs a wholesale agreement with certain brands they are required to sell at a minimum price. We are bound by our honor, to offer our products at a price that protects both our investment in the product and the brand it’s self.
Next time, you see a retailer offering a product at the same price as a 100 different retailers, understand that more times than not it is price regulated by the manufacturer of that product.
Be sure to check out The Naturally Nerdy Podcast to find out more about the issues small retailers face.