I think the policy favors the big dealers and hurts the small ones. Small, start-up companies need a hook and that's usually price-beating the big guys. It also stifles capitalism where the marketplace sets the price.
However, I know the strategy works as I've seen it with Hobie Kayaks. One thing it does do for buyers is it keeps the resale value high. With annual price increases, it's a pretty sure bet that older years will resell for their original/lower price compared to the new model year with it's 'adjusted' price.