- Posted by Johanna on June 28, 2007 at 8:51 pm
- Category: LinkBlogging
Some months ago, Diamond started switching its labels in the order book from “$2.99″ to “SRP $2.99″, for Suggested Retail Price. That’s because, until today, it was illegal for a manufacturer or distributor to force retailers to sell at a minimum price. Today, the newly conservative Supreme Court threw out that 96-year-old rule.
The decision will give producers significantly more leeway, though not unlimited power, to dictate retail prices and to restrict the flexibility of discounters…. [F]our dissenting justices agreed with the submission of 37 states and consumer groups that the abandonment of the old rule would lead to significantly higher prices and less competition for consumer and other goods.
So why should you care? Because direct market shops traditionally have used the discount to create long-term customers through pull-and-hold services. Before, it was illegal for, say, Marvel Comics to say “you must sell our comics at cover price, or we will stop selling to you.” Now? Who knows. Probably nothing, given how slow comic companies are to react.