My (semi-educated) guess is that he sets a price which is profitable for
whoever is selling his product. By having a set price the dealer is
guaranteed profit without the risk of his prices being undermined by
other companies. This takes the risk out of selling KH cycles and makes
it a more likely that many companies would be willing to sell his
products.

When businesses sell at less than the MRSP they can undermine their
competition which may be good for them but ultimately bad for the
manufacturer as less companies may be willing to sell their products.
This is especially true in niche markets.


--
saskatchewanian
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View this thread: http://www.unicyclist.com/thread/73850


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