Fiddler - as a sales manager for a manufacturer (not A/V related products), I also need to have a working knowledge of the legal aspects of pricing and agree with you completely. It's all about the "S" in M.S.R.P. - Manufacturer's SUGGESTED retail price. You can infer and suggest but can not demand that your distributors OR retailers use any specific price. From a legal standpoint, they're free to sell for whatever price they choose.
Also, there are numerous mentions of various business terms in this thread (and others) that seem to be taken as being synonymous that aren't. When people talk about "markups", "gross profit", "gross profit margins", etc., they need to understand what each of those terms mean and not use them randomly and arbitrarily.
Cost $100.00 sell for $150.00 = 50% markup
Cost $100.00 sell for $200.00 = 50% gross profit margin
Cost $100.00 sell for $200.00 = $100.00 gross profit dollars
Don't mean to "give a lesson" but way too many people use these terms without actually knowing what they represent.
Those who think that a 50% markup (33% gross profit) is "way too much" for a traditional bricks and mortar retailer to achieve aren't being realistic about what the actual costs of running a small business are. Most traditional small business owners that I've known would (at best) barely break even at a 50% markup.
As a consumer, I also want to get the "best deal" I can for my hard earned dollars ... but that doesn't always mean the "best price". As consumers we need to look for what we consider to be the "best value". Sometimes that is the "best price", other times the purchasing experience, the seller's product knowledge, warranty and service after the sale are what create the "best value". It's up to you to decide what comprises the "best value" for you.