Al,
Absolutely correct.........I had composed a long post regarding this and it was lost when trying to submit.
Manufacturers all have "overhead"; equipment, labor, insurance, facilities, raw material, safety standards (US and Europe), potential approvals and certification (UL, CSA). Engineering, Packaging, Quality Control, New Product innovation are also overhead. (Not a Complete list of "overhead", but probably somewhat Representative)
Manufactures aren't always good at Sales and distribution, so they contract same. (Manufacturers tend to focus on product manufacture) In our ever changing global manufacturing with both Internet and "brick and mortar" sales, so that service and support channels can provide ethical and honest sales and also support margins for both Manufacturer's and Distributors, policies (geographic and pricing) are implemented.
I would believe (being a Manufacturers Rep and Distributor) that these policies are good for the Mfg., Distributor and Consumer.......as with these restrictions in place, the Distributor can stock more product (to have it available) provide support and provide a channel that will be in business for the "long term", that is well-trained and able to provide the customer and the Manufacturer with needed support and service.
Certainly the internet has affected how Manufactures, go to market and provided the consumer with readily available specification and product availability.
There is a cost to "doing business" and staying "in business" and the consumer does pay this cost OR the Manufacturer cannot manufacture, people become unemployed and the cycle continues.
Thank You for your post and insight (Happy New Year, too!!)
jeffb