dickbaker - 4:38 am on Feb 11, 2010 (gmt 0)
In this case, and other MAP cases, the manufacturer is trying to protect the brand identity. Perception is everything, and if an item is priced "too low," the perception is that the item isn't top shelf.
The manufacturer gets (or should be getting, if they're playing by their own rules) the same price for their products from every distributor. They get their money no matter what. They believe they'll sell less product if the brand identity is tarnished.
Back in the very early 1970's, a hurricane hit New Orleans, and flooded the warehouse of one of the largest producers of blue denim. Millions of yards of fabric were splotchy from the water.
The mill's main customer, the largest producer of blue jeans, had tons of damaged material. Rather than sell it cheap, they created the tie-dyed fashion, and actually charged more for the damaged denim products.