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But of course, the money surplus has to go SOMEWHERE... and eventually someone would defect, and take a loss to make up on volume.

I have asked wholesalers this (who produce cars, lighters, etc.) and they say that they have a licensing agreement and can just kick out retailers who sell below MSRP too much. So those retailers would have to then get the goods from other retailers.

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>kick out retailers who sell below MSRP too much

i've worked alot in a bunch of company's when i was selling NSN's and mostly it works by your volume. You can sell at whatever price point you want but this is your price based on volume.

Jobber: 500, at $1.30 distriibutor: 1000, at $1.20 wholesale: 10000, at $1.10 partner: 1000000, at $1.00

Sometimes it makes sense to sell some inveentory at a loss to ensure you maintain the 'bucket' and happens all the time.

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