Joe,
I could be off-base here but I don't think that Lane #1 wants to set the minimal profit for the dealer. And this is my opinion only, but why would they care about the minimal profit of the dealer? They've made their money already, right? So, the question becomes, what is the real motivation for this price fixing?
Mr. B stated that he was doing this to protect in house pro-shops, the ones with the overhead, the ones that couldn't compete the guys who could dump the balls at a lower profit (presumably because they have less overhead and can absorb a lower profit) on the internet.
However, go look on e-bay. I'm not going to single anyone out but there are those who own proshops, that get some of the deals (and not just one proprietor either), that are selling the balls at lower (much lower) than what Lane #1 has dictated.
First, this is what those of us who like Lane #1 have said all along. The balls are available for little, if any, more than any other ball if you do the homework. Second, it shows that, policy or not, dealers are going to sell the equipment for a profit. Albeit, maybe a smaller one, but still a profit. Regardless of what Lane #1 says, because they need cash flow to keep their business alive. And so does Lane #1 which is why they are, and will be, relatively powerless to stop it.
The pro-shops that want to continue to overcharge for Lane #1 (and not take advantage of Internet sales) will continue to do so but will sell a relatively small amount of the balls. The resellers (with actual brick and mortar pro-shops or not) that take advantage of internet buyers will sell more of Lane #1 balls, but at a smaller profit. Lane #1 profits are the same. Wouldn't it behoove them to sell more to the resellers that can get their equipment into hands of bowlers willing to pay the less inflated price?
From what I've seen from Connecticut to Florida most proshops don't even bother carrying Lane #1 equipment. That's probably because they can't make as big a profit on it as they can on other equipment, that makes sense to me. However, those that are pushing the stuff appear to be mostly internet sellers. Less profit but more sales, that also makes sense to me.
I think Lane #1's efforts to set minimum prices are, and will be, ineffective. And they should be. The internet has changed the way that business is done. For better or worse, and in the case of Lane #1 bowling equipment, better for the consumer, status quo for Lane #1, and better for the reseller willing to adapt to the 21st century.
