resale price maintenance

Measures taken by manufacturers or distributors to control the resale prices of their products (i.e., the prices charged by businesses that resell them).

Such measures have been applied to a limited array of goods, including pharmaceuticals, books, photographic supplies, and liquor. Resale price maintenance first began to be employed in the 1880s, reflecting the success of brand promotion and the resulting increase in competition among retailers. It became especially common in the U.S. but declined after World War II. It is prohibited in some countries. The complexity of marketing channels in industrialized countries makes it increasingly difficult for manufacturers to establish and enforce a single price or even a minimum price for their goods. See also fair trade law.

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Universalium. 2010.

Look at other dictionaries:

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  • resale price maintenance — The setting of a fixed minimum price on an article by the manufacturer (abbrev RPM) • • • Main Entry: ↑resale * * * resale price maintenance, Especially British. fair trade …   Useful english dictionary

  • resale price maintenance — n: a form of illegal price fixing in which a manufacturer compels different retailers to resell a product at the same price and thereby prevents competition Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • resale-price maintenance — ➔ maintenance …   Financial and business terms

  • resale price maintenance — (U.K.) Mktg an agreement between suppliers or manufacturers and retailers, restricting the price that retailers can ask for a product or service. Resale price maintenance was designed to enable all retailers to make a profit. The Resale Prices… …   The ultimate business dictionary

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  • resale price maintenance — RPM Formerly, an agreement between a manufacturer, wholesaler, or retailer not to sell a specified product below a fixed price, usually one given by the manufacturer. The purpose was to ensure that all parties were allowed to make a reasonable… …   Big dictionary of business and management

  • resale price maintenance — /ˌri:seɪl praɪs ˌmeɪntənəns/ noun a system where the price for an item is fixed by the manufacturer and the retailer is not allowed to sell it at a lower price. Abbr RPM …   Marketing dictionary in english

  • resale price maintenance — /ˌri:seɪl praɪs ˌmeɪntənəns/ noun a system in which the price for an item is fixed by the manufacturer and the retailer is not allowed to sell it at a lower price. Abbreviation RPM …   Dictionary of banking and finance

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