Archived posting to the Leica Users Group, 2001/07/18

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Subject: [Leica] Re: Summary of help for a new purchaser
From: Henry Posner/B&H Photo-Video <henryp@bhphotovideo.com>
Date: Wed, 18 Jul 2001 14:32:44 -0400

At 12:17 PM 07/18/2001, you wrote:
>I think Henry was a bit short on his explanation for the standard advertised
>prices on Leica (MAP)....

I was trying to be brief . . .
Several manufacturers/importers have MAP (Minimum Advertised Price) 
programs. They are voluntary and have no effect on the selling price so 
they're not restraint of trade nor collusion nor price fixing and are 
legal. An MAP agreement basically states (and the particulars vary from 
vendor to vendor) that no matter what we SELL an item for, there's a number 
below which we may not ADVERTISE the item.

B&H participates in most MAP agreements because the vendor makes doing so 
attractive for the retailer. We get "preferred customer" status, or 
whatever. Any retailer who's authorized to sell the merchandise has the 
same opportunity.

The MAP price is 99.999% of the time not a little higher than our selling 
price. If we advertised the selling price, we'd be in violation of MAP and 
lose our "preferred customer" status. If we advertised the MAP price, 
someone reading our ad who was unaware of the MAP situation might think we 
were considerably higher in price than the marketplace and would shop 
elsewhere. Can't have that, you know. <s>

We know this is a hassle. On the phone, our sales associates simply say the 
selling price, but our ads and web site are another matter. Most MAP 
contracts were written pre-web, and vendors have been scrambling for the 
past year over what's "kosher" and what isn't. As a result, some MAP 
agreements now prohibit "Call for price;" some permit us to e-mail a 
selling price or show one in a pop-up window or put the selling price in 
the shopping cart, or whatever. We have worked hard to make the web site 
conform, item by item and vendor by vendor in a manner that's as convenient 
as possible.
- --
regards,
Henry Posner
Director of Sales and Training
B&H Photo-Video, and Pro-Audio Inc.
http://www.bhphotovideo.com