RETAIL PRICE MAINTENANCE Meaning and
Definition
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Retail price maintenance refers to a pricing strategy employed by manufacturers or distributors to regulate or fix the price at which their products are sold by retailers. It is an arrangement where the manufacturer sets a specific price that retailers must sell their goods, disregarding any discounting or price cutting. This policy aims to maintain a consistent retail price across different retail outlets.
The concept behind retail price maintenance is to create a level playing field among retailers, preventing price wars or unhealthy competition that can negatively impact a manufacturer's brand image or harm the overall profitability of the distribution network. By establishing a minimum price, manufacturers can control the perception and value of their products in the market.
Retail price maintenance can be implemented through various means, such as contractual agreements between manufacturers and retailers or the use of suggested retail prices. In some cases, manufacturers may threaten retaliatory actions against retailers that violate the established price, ranging from withholding supply to termination of business relationships.
This practice has raised concerns about its potential anti-competitive nature. Critics argue that retail price maintenance restricts competition and consumer choice by prohibiting retailers from offering discounts or lower prices, potentially leading to higher prices for consumers. Consequently, some jurisdictions have implemented regulations limiting or outright prohibiting retail price maintenance to promote competition and protect consumer interests.
Common Misspellings for RETAIL PRICE MAINTENANCE
- eetail price maintenance
- detail price maintenance
- fetail price maintenance
- tetail price maintenance
- 5etail price maintenance
- 4etail price maintenance
- rwtail price maintenance
- rstail price maintenance
- rdtail price maintenance
- rrtail price maintenance
- r4tail price maintenance
- r3tail price maintenance
- rerail price maintenance
- refail price maintenance
- regail price maintenance
- reyail price maintenance
- re6ail price maintenance
- re5ail price maintenance
- retzil price maintenance
- retsil price maintenance
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