>> Read what I wrote - you CANNOT ADVERTISE below a certain price floor- UNLESS you have an agreement with the source. <<

The source being the distributor...not the label and not the band...the distributor (an entirely separate company). Once a CD is on a store shelf, the label and the distributor have both been paid for it. The band only gets money based on sales after recoup.

The distributor buys them from the label, the store buys them from the distributor.

As long as the label gets what they asked for from the distributor, and the distributor gets what they ask for from the retail outlet, then yes, Best Buy can sell below cost and they do...all the time.

In the years I worked at my particular CD store, I do not recall ever having to agree to any set pricing with the distributor. We bought it and sold it for what we wanted.

And even if they do have to agree to an advertised price, all they have to do is tell the distributor "we're selling it for $7.99 to the public". The distributor isn't going to care because the distributor doesn't sell to the public, it only sells to retail outlets. The distributor isn't going to care if the store is losing money or not because they've already made thiers.



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