Summary
*Wal Mart should require more manufacturers to pre-print suggested retail price to keep other retailers from gouging.
Analysis
Think about a company such as Frito Lay that has always pre-printed the suggested retail price (SRP) on each and every package that is put in the retail section. (Food service and Vend are not pre-priced).
Frito Lay often prints a different SRP for georgraphical areas of the country, sometimes to reflect higher transportation costs (Hawaii), sometimes just to match the competition, sometimes to gain market share and/or drive the competiton crazy.
Vendors like Wal-Mart are free to sell the product for less than the SRP, but are not allowed to sell it for more. This "guarantees" the retailer ther margin, but does not allow for "gouging". Frito Lay has withstood many challenges to this system over the years. Safeway back in the 70"s threatened to kick FL out of their stores if we didn't take the SRP off the package and FL stood up and said they were not taking the SRP off for Safeway or anybody else for that matter.
Wish othe manufacturers would do the same and while it wouldn't hurt Wal-Mart one iota, it would sure keep some of other retailers from taking additional margin when it wasn't justified. Food for thought.
