Archived posting to the Leica Users Group, 1999/12/30
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]This is true as far as it goes. However, several niche manufacturers have worked around this rule using a creative purchasing contract with retailers. Here is how it works.. A manufacturer produces a product on which they want absolute price stability. (Bose speakers for example) They approach the retailer with a proposition. We will sell you product XXXX. You, Mr Retailer, may sell this product for any price you choose. However, if you choose to sell it for below the price contracted, we will CHOOSE not to sell more of these items to your chain. This backdoor "price fixing" has been the standard M.O. for BOSE, Maytag and recently Kitchenaid brand on certain models of dishwashers. Interestingly this practise is only employed by manufacturers who feel that there is NO DIRECT COMPETITION from other brands for their product. (A bit arrogant I think) Of course many retailers love the idea, since it takes price out of the equation for the customer, and typically on the highest priced goods. I am have no idea if this is how Leica is controlling the prices charged for their products. Considering the fact that it is unlikely that they even offer much Ad subsidy to their retailers,and that the price of Leica goods does seem pretty non negotiable, I would not rule out the possibility. >From: Marc James Small > >In the US of A, our "Fair Trade" laws no longer allow a manufacturer to set >prices, though they do allow the manufactuer to set a "Minimum Advertised >Price" or MAP. This is why so many US camera stores advertise "CALL FOR >PRICE!" > >If a dealer violates the MAP, the only real sanction is that the >manufacturer or distributor can quit paying the dealer a premium for its >advertising costs. Obviously, this only affects the large, national stores >which get such an advertising supplement in the first place. > >So, no, Leica does not dictate the selling price, though they did into the >1950's before the law was changed. > >Marc > >msmall@roanoke.infi.net FAX: +540/343-7315 >Cha robh bas fir gun ghras fir! > ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com