Resale price maintenance.

Resale price maintenance. This is where the producer (manufacturer) fixes the price of a commodity at which the seller (retailers) have to sell to the final consumers. The price is usually written the commodity container. For example Newspapers, soft drinks. etc.

Advantages (merits) of resale price maintenance

• It is time saving since it does not involve  bargaining
• It reduces unnecessary competition among sellers.
• It helps to control consumer exploitation in form of increasing prices by sellers/retailers.
• It helps to maintain price stability.
• It helps to reduce  on the duplication   of the products by other producers.