[access-uk] Re: In Touch: Why do we pay so much
- From: "Robert Stokes" <restokes@xxxxxxxxxxxxxxxx>
- To: <access-uk@xxxxxxxxxxxxx>
- Date: Fri, 30 Jul 2004 11:32:56 +0100
Hi Folks,
I found something on a web site about MRRP and thought some of you might
like to read it. It seems to me quite a bit of duff gen is being banded
about.
Prices
Unfortunately, you won't find the law on prices written under one neat
convenient heading. The two main sources are the Prices act 1974 which tells
traders how they should display the prices of certain things like food and
drink and the Consumer protection act 1987 which deals with the problems of
misleading price indications.
Why is it that you can see the same item offered for sale at different
prices in different shops?
Because the law says that it's up to an individual retailer to decide what
he thinks is a fair price for the goods that he's selling. Of course, you
can disagree with him and if you think the price is too high, you can always
offer a lower figure. The shop doesn't have to accept your offer and you're
quite entitled to go somewhere else to find a better bargain. The law
expects you to shop around and look after your own interests.
What exactly are recommended retail prices or RRP's?
These are the manufacturers' guidelines or suggested selling prices but
shops don't have to follow them if they don't want to. This hasn't always
been the case. Years ago, we had a system called "re-sale price
maintenance". Under that system, manufacturers or producers dictated the
minimum selling price to consumers. Shops had no choice and were not allowed
to go below the manufacturers' limits so every shop tended to charge similar
prices and consumers knew what they would be expected to pay.
Then the big supermarkets sprang up. They soon realised that they could buy
things from manufacturers at lower prices because they bought in bulk. They
wanted to pass on the savings to their customers but the law at that time
didn't allow them to, so it was changed. Resale price maintenance was
scrapped and the government decided that customers would have a better deal
if shops were allowed to undercut (charge less than) the manufacturer's
recommended prices. Shops today compete for customers and prices are left to
find their own levels co customer have to become a bargain hunter and look
around before buying to save money.
You can get mor information at:
http://www.consumereducation.org.uk/money/english/prices/01.htm
Best.
Robert.
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