Archived posting to the Leica Users Group, 2000/01/03
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Dan S wrote: > 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. Here in Australia, if I go to ten different shops and ask for a price on Leica equipment, be it cameras or lenses, I get 10 different prices. So I have to assume, here is no price fixing or manipulation at all. Regards, Horst Schmidt