[access-uk] Re: In Touch: Why do we pay so much

Hi Robert
I wondered when someone would pick up on the price "fix" structure.
Unfortunately it seems to be a fact and Dealers, resellers etc cannot alter
the price. Needless to say against the law.

Colin

----- Original Message ----- 
From: "Robert Stokes" <restokes@xxxxxxxxxxxxxxxx>
To: <access-uk@xxxxxxxxxxxxx>
Sent: Friday, July 30, 2004 11:32 AM
Subject: [access-uk] Re: In Touch: Why do we pay so much


> 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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