I think some dealers mind, others don't. The factories don't mind, they will only listen to their customers(our dealers) when they buy mass quantities , I think then a dealer can force some influence.
On the other hand, I have heard of prices for movements which are incredibly low as $ 25 for 500 pieces for nonbranded watches, as a masterwatchmaker here told me.
My respect for watches, the technique ect and the people who assemble them, has grown since I'm on the boards, in some cases the prices go beyond the quality but overall I agree with By-Tor that there are some very good reps out there on fair prices. For the rest the price is set by the demand, popular watches will cost more.