I am a capitalist and I am all for an open market, however, there are certain business ethics that are adhered to in every successful marketplace. Lately, a certain 'manufacturer' has, in my opinion, crossed ethical business practice lines by directly competing with businesses trying to offer said manufacturers product. Traditionally, such an endeavor would be done with some type of 'price-matching' policy. In other words, the manufacturer would agree to not undercut the retailers trying to bring his product to market. Good examples of this are SMC, Trinity, Team Associated and others who offer their product for direct purchase at RETAIL price.

On the positive side, a manufacturer going direct can lower the overal price of his or her products by applying downward pressure as well as lowering the wholesale cost of the product. This is a win/win/win as the manufacturer can gain market share by having a less expensive product, the retailer can lower his expense, and the consumer gets a less expensive product. In this case, however, said manufacturer has taken an unfair, predatory approach undercutting retailers, maintaining the original wholesale value, yet, overall, de-valuing their product as well as their competitors.

In the end, products cost less, hobby stores close, and eventually the manufacturer runs out of market. Nice thing for the manufacturer is they are the last to go having leached the life out of everyone.

I would like to throw this out there and hear others opinions on the matter.

I fully understand your point but your posting is so ambiguous that it is nearly impossible to comment on. Who is the mfg? There is no reason to hide a mfg'r name when discussing their business ethics. I buy from a broad base of suppliers and also occaisionaly mfg parts myself. It is not apparent to me who you are refferring to so I assume others don't really know who, or what you are talking about either. Please add some more info so we can comment.
Rick<><

I don't think it's important at this point to lay names out there. I would just like to hear the opinion of others in business whether it be R/C or anything else. Do others share the opinion on the pricing ethics of manufacturers or not? If not, how do you feel. I would enjoy an open conversation on the subject.

Without knowing any specifics, I would say this isn't a case of unethical business. I'm not saying I would do it and it might be seen by some as short sighted, self serving and greedy, but it's the company's prerogative to do business that way. Also, there are two sides to every story.

We have the right, as consumers, to buy or not buy from any manufacturer. Retailers have the same right. If they think the deal they're getting is less than fair, stop doing business with the manufacturer.

There are several things to take into the problem. Being a retailer I fully understand there are 2 sides to everything. Number 1 the manufacture must sell product to stay in business. If his dealer network is not supporting him he must look elsewhere to move product. Not knowing what manufacture you are talking about it's hard to know. Many times a manufacture will design and build a product, Advertize it and get a following when low and behold somebody will nock if off at a lower price and the retailers will flock to the copy cat. Like I said there is always two sides to every story.

To the public certain practices may look unethical but may be the only means of a business staying profitable. The parts he makes but going through distributors may cause the price to inflate - going direct would mean the company can reduce retail price and still make a decent profit.

You mentioned SMC let's take them for instance, while their retail price is $95 for a 6cell pack you see prices ranges from 49 to 74, prices changing different depending on shop or site selling this product. Company could do away with a distribution chain selling direct to the public setting his own price and this would not be unethical - just american enterprise.