Cost Effective?

Another major issue with a particular brand’s floor pricing is the brand manufacturers need to preserve a pricing level where second-tier distributors can realize a profit between their best price and the actual selling price of the product through the big-box retailers or mail order catalogs. The manufacturers have a vested interest in maintaining the current pricing levels. They won’t support price cutters, and they won’t pay additional co-op advertising if those sales come at the expense of diminished margin for all their distributors.