Reply by Viktor

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Posted on prices

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472 posts in 4423 days

#1 posted 02-14-2012 05:11 PM

The term here is resale price maintenance, which is part of a strategy to prevent brand devaluation (not to be confused with price fixing). Often viewed as anti free market it is a necessary evil. I hate to make broad generalizations, but here it is. American manufacturers and retailers tend to compete on price, which for many sectors is a lost battle in a today’s open world with emerging economies. Germans tend to compete on quality. That’s why Craftsman turned into crapsman and Festool remains Festool.

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