Dawn raids at Fender

Discussion in 'Bad Dog Cafe' started by BoogerRooger, May 27, 2018.

  1. warrent

    warrent Friend of Leo's

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    Technically MAP doesn't prevent you from selling at a lower price just from advertising one.
     
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  2. soulgeezer

    soulgeezer Poster Extraordinaire

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    It’s ALWAYS about Gibson around here. Didn’t you get the memo?
     
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  3. Piggy Stu

    Piggy Stu Friend of Leo's

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    'WOODGATE'
     
  4. burntfrijoles

    burntfrijoles Poster Extraordinaire

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    I could be wrong but, in my opinion, Fender and Gibson use their might to favor bigger distributors. Some small dealers can't meet Fender's minimum sales quotas and are eliminated.
    Although you can negotiate lower prices from folks, it's not effortless and the fact that even the big guys must adhere to MAP means that people often pay list.
    On the other hand I can't see how this is any different than TV brands from setting prices. It doesn't matter where you shop, you're going to pay the same for a 55" Samsung HDTV.
     
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  5. Dave W

    Dave W Friend of Leo's

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    Ironic. :)
     
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  6. luckett

    luckett Banned

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    The Asian money behind Epiphone is going to come in and buy them.
     
  7. moosie

    moosie Doctor of Teleocity Silver Supporter

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  8. 3-Chord-Genius

    3-Chord-Genius Poster Extraordinaire

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  9. NWinther

    NWinther Tele-Afflicted

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    F...ing Thomann :)
    Before long we are all Harley Bentons!
     
  10. Frontman

    Frontman Tele-Holic

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    One thing I don’t like about Japan is that price fixing is common practice here, even though it is illegal.

    Some people (or a lot of people) noticed when beer prices were raised a few years back. Japan has 5 larger breweries, and somehow, the prices for all their beers went up the exact same amount on the exact same day. The breweries claimed it was a “coincidence.”

    Today, it costs 1800 yen for a movie ticket in Japan. It doesn’t matter which movie you want to see, or which theater you go to, every theater in the country charges the same price.

    If you go to an estate agent to rent an apartment, or to buy a home, all agents in the country charge the same fee.

    When the yen gained some 40% against the dollar a few years ago, many people thought it would be a good chance to buy a foreign car. Yet, no dealer in the country lowered sticker prices on imported cars while the yen was strong. A new BMW cost the same at 80 yen to the dollar than it did when the rate was 130 yen to the dollar.

    This is blatantly illegal, yet, because price fixing is a cultural practice in Japan, the law is very seldom enforced.

    The downside is that price fixing makes the cost of living in Japan very high. I can get a new Sony TV or Nikon camera cheaper in New York or London than in Tokyo.
     
  11. warrent

    warrent Friend of Leo's

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    Oh please give me a break no one cared about Henry other than he broke the law.
    After the visit to Madagascar to see the illegal logging, Martin and Taylor stopped buying from Madagascar Gibson didn't. Martin and Taylor have spent a lot of time and money trying to get eco friendly woods, Henry needed to buy a headphone company and lose half a billion dollars.
     
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  12. Frodebro

    Frodebro Doctor of Teleocity Ad Free Member

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    England had best be careful-if they push it too far Yamaha will buy their island right out from under them. :lol:
     
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  13. bigbean

    bigbean Tele-Afflicted Silver Supporter

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    What he said....... Henry was buying banned wood with the paperwork trail washed through Germany. (sort of like buying a car where the car fax report says it was sold and rebought in Oklahoma within 30days)

    He got jacked up by it and blamed everybody else.
     
  14. bluesky1963

    bluesky1963 Tele-Afflicted

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    That's not price fixing. Price fixing is when competitors in the same business get together and decide on a standard price for something. Like if LG, Samsung, and Sony all got together and decided that none of them would charge their customers less than X amount for a 55" HDTV.
     
  15. william tele

    william tele Doctor of Teleocity Ad Free Member

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    Even on a Gybsin forum?
     
  16. beyer160

    beyer160 Friend of Leo's

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    When you look at the facts (including that Henry donated paltry sums of money to both Republicans and Democrats, hardly making him any kind of political target) there's really no conclusion possible other than that Gibson knowingly broke the law, was dumb about it, got caught, and copped a plea because they had no other choice. However, some people are just gonna believe what they want to believe.

    2b4c6w.jpg
     
  17. jaybones

    jaybones Friend of Leo's

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    That was my thought when I read the tittle.

    Well, they could always come out with something analogous to the Government Series. I mean that was such a boon to Gibson. :rolleyes:
     
  18. R. Stratenstein

    R. Stratenstein Doctor of Teleocity Silver Supporter

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    Why is price fixing illegal? Say I’m a guitar manufacturer and I just brought out a slab-body, two-pickup guitar. I see that Fender is getting $xxx for Telecasters, and I think that would be a reasonable price for my guitar, too. But I dare not price it at that point for fear of “price fixing”. Especially for a luxury item like a guitar, where you can just walk away, who cares? Governments inflict more unfair monopolies than any private goods or service providers.

    Dawn raids, guns drawn, news film crews alerted and positioned to get the dangerous criminals perp-walked out in chains. Gummint gransstanding BS.
     
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  19. BritTwang

    BritTwang Tele-Holic

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    Yup MAP is illegal in the UK, but that doesn't stop the manufacturers from doing it on the quiet. Finally someone is doing something about it. Prices in the UK got out of control a few years ago, so this might help beat them down a bit.
     
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  20. warrent

    warrent Friend of Leo's

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    That's not price fixing. Price fixing is when all the manufactures get together and set prices. In your example you would meet with Fender and decide together on the price of their "tele" and your new guitar and then enforce with retailers that those were the prices the guitars retailed for. And as seems to be the case in the UK decide who gets to retail your's and Fender's products. It reduces competition and makes things more expensive for consumers.

    Here in Canada we have just had 16 years of price fixing by grocery stores on bread prices. Bread rices were on average a 1.50 more per loaf than should have been.

    here are the basics:

    The Competition Bureau alleges that Canada Bread Company Ltd. and George Weston Ltd.'s senior officers communicated directly to raise prices at least 15 times, with an average increase of 10 cents per loaf passed on to consumers, between about 2001 and 2016.
    According to previously-sealed information to obtain documents, the pattern became colloquially known as the 7/10 convention — with an average seven cent price increase at wholesale and 10 cent price bump for the consumer in stores, resulting in an average margin increase of three cents per loaf for retailers.
    The conversations around raising prices on baked goods including bread, buns, bagels, naan, English muffins and tortillas started months before the increase would hit the shelves, according to the documents.
    After agreeing on a price increase, the suppliers allegedly met individually with their retail clients — including Loblaw Companies Ltd., Walmart Canada Corp., Sobeys Inc., Metro Inc. and Giant Tiger Stores Ltd. — to get their approval for the price hike. The retailers agreed to the boost on the condition their competitors would follow suit and demanded that the suppliers actively manage the process to ensure all retailers were co-operating, the documents said.
    "The alleged conspiracy was a deliberate attempt by management of Canada Bread and Weston Bakeries, along with the retailers, to suppress competition at both the wholesale and retail level and thereby increase the wholesale and retail prices of fresh commercial bread in Canada,'' wrote Simon Bessette, a senior competition law officer with the Competition Bureau's cartels and deceptive marketing practices branch.

    But between 2001 and 2015, the consumer price index for bread, rolls and buns rose 96 per cent, according to Statistics Canada. During that same time frame, CPI for all food purchased from stores increased about 45 per cent.
     
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