gpilling - 7:53 pm on Feb 14, 2010 (gmt 0)
1. Keep prices at MAP and give sales to competitor.
2. Complain to manufacturer until they make competitor raise to MAP.
3. Undercut like competitor, and risk being discontinued as a retailer by manufacturer.
4. Make your own version of the product and advertise it on the listing for brand name product. This is easier than you think (barring patent issues) by using small job shops and contract manufacturers.
"Buy BigBrand for $199 or our house version for $149" type thing.