The Strongest Guarantee of the Lowest Price
Customers want the lowest price. Online customers are savvy about search it out. How can you best communicate to your customers that you're offering them the lowest price out there?
If you are selling your product in another state or country, you should label your price as the "minimum resale price" (MRP). The legal term was originally used by manufacturers to control the prices of their resellers, but any offering can have an MRP.
Before the U.S. Supreme Court case Leegin vs. PSKS, MRP was considered price-fixing and was illegal. But the more recent ruling, suggests that MRP can be used in more “innovative” methods of commerce, such as internet-based retail where margins may be smaller.
Your MRP policy, if you choose to make one, can have any specifications you’d like. These can allow for lower prices outside of your offer or can describe any other specifics or limitations that you choose to include. This might be because you have a special price for employees or are having a sale on a limited amount of your offering. On the other hand, an MRP can be strongly enforced, as well.
Many sellers already sell at one price. With all of the discounting going on these days, the MRP gives sellers a method to prove that they are offering the best deal. Other businesses have price guarantees, but by using the MRP you are most likely to have the law guarantee your price. Even if a manufacturer or a seller offers money to those that find a lower price elsewhere, if the contract makers do not call the price an MRP, it is easier for them to back out of the contract. Any brick and mortar business could have an MRP sticker that means that they've signed the strongest guarantee that their prices are final.
If a person finds an offering like the one that you are selling at a better price, they cannot be confident of its value.
The difference between horizontal and vertical price-fixing is important to note here. Horizontal price-fixing is the collusion of competing sellers in determining a price without the participation of the manufacturer or creator of the good or service. It is still illegal in the United States and around the world. Vertical price-fixing is the dictation of a final sale price by the manufacturer or creator of a product or service. Because of the Supreme Court’s opinion, MRP agreements are now judged on a rule of reason basis in the U.S., Canada, China, and Israel. To you, that means that as long as you don’t have a mark-up that is too high, you are not violating any anti-trust laws. (Please note, that this kind of commerce must also usually be between separate states or countries.)
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