It started off that the prices on the internet were practically at cost. Why? Because by selling things at such low margins, the seller was getting more visitors which means more $$$ for advertising on their site. This more than made up for the low margins made on the actual sale of the camera - let alone the much higher margins on accessories like lens cleaning kits, straps etc...
MAP has killed the free market and cost consumers billions. The camera manufactures weren't stupid. They figured that they could sell their cameras to the world via the internet, and make even larger profits by eliminating the middle man. However, they couldn't do this if B&H was selling at a lower cost than what they had on their own site. It wouldn't look good, if for example, Nikon was selling the same item at a higher price than anyone else on the internet. Enter MAP. Minimum Advertised Price allows Nikon, and others, to sell their equipment on their website with the security of knowing that no one will have a lower price. No one except for those who walk into a camera shop and make a deal in person with the sales person.
This is obviously price fixing and it's not illegal in the US. MAP has ruined the market place for consumers. Per US FTC guidelines, MAP is not illegal because it doesn't actually prevent a retailer from selling a product lower than MAP, just advertising it. So that's why you'll see "add to cart to see price" buttons. This is a workaround to the MAP restrictions.
When I was selling film cameras, no one sold them for MSRP. If MSRP was $1,500, the camera was selling on the street for around $500.
Just take a look at the 645D. Was at $9,999, then Nikon introduces the D800 and then it immediately drops to $6,999. Someone recently posted that they saw the 645D in a camera window selling for around $5,500. If MAP was banned, this camera wouldn't have ever been at $9,999 in the first place.
We're all getting screwed by this policy, and it's high time that it becomes illegal. In the mean time, I will continue to buy used on eBay or KEH whenever possible.
Last edited by FrankC; 10-23-2013 at 12:21 PM.