MAP is a big mistake.
It goes against everything about a free market economy and artificially keeping prices inflated does not help brand perception.
They say it helps level the playing field but the only ones I see that go lower than MAP are Amazon and eBay.
How does that help the little guys???
MAP is not price fixing. It's maintaining brand value and ensuring that a product is available at more than a handful of gigantic retailers at an ADVERTISED price.
Heres the skinny on MAP: It's billed as something that makes things fair for all dealers. If I am Joe's knife shop and my buying power allows me to buy a Spyderco Endura for, say, $50 and MAP is $75 (totally made up, but just easy math), then I am able to make a $25 profit. Say that a large outfit like Amazon has buying power that purchases the same knife for $45, they still have the availability to make $30. Of course, this ignores the fact that Amazon would probably be fine with selling 10,000 knives at $50 than Joe selling 100 at $75. But the idea remains that money can still be made. Anti capitalism at its finest, right?
Ehhhhh, not so fast. Point 2: No matter how much it looks like the world runs on high volume/low margin online sites, A LOT of business for a manufacturer comes from brick and mortar dealers which buy from the linchpin of durable goods...distributors. You know who hates online sales more than brick and mortar guys? The guys who SELL to brick and mortar guys. Now we are getting down to the $$$ of things that lays under the whole "well, we wanna be fair and groovy with all our little dudes!" spin on MAP. We are no longer talking about Joe's Knife Shop buying 10 knives. We are talking about Knife-Ex Global doing a $200,000 early buy on the limited edition glow in the dark pink FRN handle Endura. These cost a premium and Knife-Ex wants to make sure they have them in stock and ready to ship because they have already sold them out to dealers. Knife-Ex is a loyal purchaser and does not want to compete with Amazon directly with Spyderco. Knife-Ex may buy smaller volumes, but they are more profitable and CONSISTENT. MAP makes it possible to sell to both the BnM supplier and the faceless online juggernaut.
Finally, MAP pricing preserves brand value. We can all ride around on our 100% Free Market Ponies and thumb our noses at the ignorant commies (ie, everything that isn't completely market driven), but everything can be had cheaper if you want it to be. Your car, your TV,....YOU. Someone out there is just as qualified as you are at your job and WILL do it cheaper. Why should the bosses pay you what you make? Or if you own your own business, why shouldn't someone just find a cheaper place to get your goods/service? Its all about the $$$, right? I don't care about the intangibles of what you offer. I want CHEAP. Free Market, baby. Compete or starve. Its the American way
Finally, MAP does not stop a supplier from SELLING below that price. It stop them from ADVERTISING below it. It's actually fairly toothless when you get down to it, yet people make it sound like it reads like a Communist Manifesto best read while enjoying terrible vodka and excellent cigars.