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 — /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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