PRICE FIXING???

[springbok]

It's outrageous and IMHO probably illegal. If you were selling their product which had obviously "fallen off the back of a truck" you could see them stepping in to try and protect their name and reputation etc. but the fact that you have worked through the regular channels makes it inexcusable.

I think you should approach them first of all on the basis that you run an online shop which is only supported by enthusiasts and your overheads and thus margins are much lower. To what extent is your pricing structure in any way threatening your competitors?

This definitely smacks of price fixing which is illegal but approach cautiously and try and reason with them.