they WERE, not anymore...
Price fixing
- Thread starter zayd
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Well that sounds like another name for MAP..... IMO still illegal, how can they force you to change it?
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The more we dig, the more it becomes apparent that there is a problem with MAP. If I go to Game and buy a product on special they will refund the difference if I find it cheaper elsewhere. The wholesaler won't force Game to up their price.
Huge problem here. Where's the lawyers?
Huge problem here. Where's the lawyers?
again....you got it wrong they dont force me to "sell" at higher prices......they asked me to "advertise online" at reccommended selling prices.......which is understandable,
taking into consideration my post earlier about end users hussling the lfs's.
So leme get this right for all the guys out there
So you can sell at any price you want even give the stuff away at cost +5% if you wanted to? the wholesaler wont say a thing as long as you dont ADVERTISE it lower?
All that needs to happen is for the customer to negotiate with you and if agreed upon everyone is happy?
leslie hempel
Professional Aquarist
Not actually, he will pull supply if you continue to sell below the suggested retail repeatitivley...
So you are expected to sell at a price more or less (perhaps within R100-R200) of the MAP pricing..
Which I'm sure is illegal and why Marco is defending the wholesaler. No offence Marco, but if your business model is such that you can sell at 20% cheaper thn anyone else for whatever reason, the supplier should not interfere.
Missed that
Map = Minimum ADVERTISED price
MSP = Minimum selling price - ?
Sorry, so he is forcing you to advertise at MAP, because that is the impression i got here.
leslie hempel
Professional Aquarist
here is the clause,
We have implemented a new MAP (minimum advertised pricing) for the products we supply, all customers are asked not to advertise under these amounts (in store or online), this is to protect all parties, our brands need to have their reputation as high end quality products protected from price cutting. The MAP also sets a reasonable margin for all customers to make distributing our products worthwhile. The goal of map is to minimise unfair competition between retailers, (Wholesalers name here) will re-evaluate ongoing buisness with an approved retailer who repeatedly advertises products under the MAP
We have implemented a new MAP (minimum advertised pricing) for the products we supply, all customers are asked not to advertise under these amounts (in store or online), this is to protect all parties, our brands need to have their reputation as high end quality products protected from price cutting. The MAP also sets a reasonable margin for all customers to make distributing our products worthwhile. The goal of map is to minimise unfair competition between retailers, (Wholesalers name here) will re-evaluate ongoing buisness with an approved retailer who repeatedly advertises products under the MAP
so they can sell at cost if they want they just cant advertise it I have a supplier in another hobby of mine that pretty much gives everyone who has bought at least once before in there store a 10+%discount but the advertised price is still suggested retail price even though no one actually ends up paying that much
Ok im out of this. dont have the time. I am happy that we can get the products that we want when we want and that there are LFS out there that we can walk into and get the stuff, unhappy with the price im sure its open to negotiation.
I think you misunderstood..
I agree with everyone - sometimes it sucks seeing the same product cheaper somewhere else. I think the idea is to avoid this - thats why MAP exists - to try and get everyone on the same page.
Its like electricity at the moment.. I pay 83c a unit - prepaid is R1.21c , business is R1.93c and the rural areas is 30c .. now thats wrong.. MAP would make them charge 1 set price for everyone.
To clarify what i'am aiming my thoughts to here is - MAP should actually be RR - Recommended Retail. They suggest that the items recommended price should be
R xx.xx , so that all business stick to the same amount.. To avoid problems like this. another way to think of it is then not who is cheape, but who gives me the service i want ? Shop A is ok, Shop B understands my needs ...its then a more service rated experience than price.
If you thinks its frustrating in the JHB/PTA/CPT/DBN areas, come stay here.
I have to drive to JHB/PTA, try to find a open shop, try to find wat I'm looking for, and usually i dont.. its a shlep.. paying MAP then doesnt matter to me, as I have to look at who has what I need anyways. If online-shops has it, and quick delivery can happen, i buy through them..if the shop has it, i buy from them.
What is unfair competition? Any competition is good. Let's all stop running our business in the most efficient manner and depend on MAP to make us profitable. Crazy business model. Only winner is the wholesaler.
You can't compare to electricity, it is a necessary utilty and the pricing structure we can debate all day as it is a regulated industry.
I understand different shops have different service levels and the pricing structures are different. My point is that the wholesale should not force a retailer to sell at the higher price if they are prepared to discount it.
Compare it to buying a Play Station. There we also have MAP. Ster Kinekor is the distributer, but prices vary between shops. When there is a special at Game. Pick 'n Pay doesn't complain and then Ster Kinekor reprimands Game and forces them to increase the price.
Anyway, got to get some work done.
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