Dawn raids at Fender

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

  1. boris bubbanov

    boris bubbanov Telefied Ad Free Member

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    Ja.

    Still trying to figure out what this writer is going on about. Glad they're not assigned to any war hot-spot or other hair trigger assignment. As was posted above by Geoff, precious little actual information here. Just exactly what kind of presence does FMIC even have there? Are we talking about a small office with 17 staff, or something? "Informal Raid". WTF?
     
  2. william tele

    william tele Doctor of Teleocity Ad Free Member

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    Thank you for noticing. Price fixing, my butt. I'm just now discovering this thread is not about repairing prices like it says...
     
  3. DougM

    DougM Friend of Leo's

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    Ask Shane at "In the Blues" how much Fender guitars cost in Australia (I think Mexican standards are around $1000 Australian, AM. Pros are over $2000), as the locally owned Aussie Fender distributor is making a killing! Down Under also has steep tariffs/import duties. If I'm wrong about any of this, those members from Down Under please correct me.
    Same for Japan- on Ebay Affinity Strats and Teles are $450-500! Am. Pros are $2000-2300.
     
  4. beagle

    beagle Friend of Leo's

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    Well, seeing as the Aussie dollar is worth about half a British Pound or three quarters of a US dollar, then their prices always look expensive. Duties on imports and taxes are something we all have to live with and price differences from country to country are inevitable.
     
  5. otterhound

    otterhound Poster Extraordinaire

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    Price fixing can work in the opposite way as well .
    Parties get together and agree that 1 competitor is preventing them from raising their prices and remaining competitive . These parties agree to drop their prices in order to force the competitor to drop theirs or lose out , but by the competitor dropping prices in order to survive , they lose enough profit margin and that forces them to close their doors .
    What remains is a marketplace when the remaining parties can safely raise their prices , remain competitive and increase their market share because a competitor has been removed from the market place .
    The irony of this is that the consumers love it until they begin to feel the crunch in the end .
    There are other ways of price fixing that those that have never been in business would have no knowledge of or care about .
    A supplier that is also directly competing with one of their customers figures they have more to gain by eliminating one of their customers than they stand to lose . The supplier begins a practice of gradually increasing the prices to their customer an , in time , prices them out of the market . The customer either notices this soon enough and finds other supply sources or doesn't and enough damage is done to destroy them .
    Many of these ways of price fixing go unnoticed by the average consumer .
    Price fixing can also be beneficial , contrary to what most are taught . In short , it can be used to help keep smaller companies afloat by a larger supplier that is not interested in the smaller jobs . In this scenario , the supplier keeps it's pricing artificially low to their customers which , in turn , are able to remain competitive to the smaller end customers while allowing the larger entity to focus on the larger jobs that the smaller outfits are not equipped to handle .
    While technically illegal , this last form of price fixing is not at all harmful , yet I know a man that spent time in jail for this . He could have easily and legally crushed a number of companies , but he chose not to . In fact , he helped them to survive .
     
  6. Paul Jenkin

    Paul Jenkin Friend of Leo's

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    The way I read the article (and I could be wrong) is that CMA is looking for evidence that the prices at which products from the 5 manufacturers are offering to the public are being kept unnecessarily high (i.e. being "fixed" and operating as a cartel).

    I've often wondered how / why the price of "item x" is the same, irrespective of where I want to buy it in the UK. Salary and rents for premises vary significantly from London (at the top end) to more rural / provincial towns and cities. Stock should be the one thing that's relatively stable, aside from variations due to transport. Other business expenses and profit margins can only make the ultimate price differential of "item x" greater - and yet it's being sold for the same price by all (with very few exceptions).

    It's a bit of a dilemma. Allowing retailers to sell at a price that the retailer sets would favour the more efficient and less greedy - but those guys aren't necessarily the volume sellers. It's also mean we'd be chasing all over the country to get the best price. keeping the price "fixed" provides a more level playing field but probably benefits the volume sellers (and manufacturers) - just on sheer scale of sales.

    It'll be interesting to see what the CMA finds and whether it will take action if there is a cartel / price fixing....
     
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