[access-uk] Re: In Touch: Why do we pay so much
- From: Wally.Harding@xxxxxxxxxxx
- To: access-uk@xxxxxxxxxxxxx
- Date: Fri, 30 Jul 2004 11:50:53 +0100
Certainly very interesting but regarding access technology products, I can't
see it working in the same way as for most products.
What follows is mainly speculation on my part and are my personal thoughts.
The access technology market, even on a world wide basis, is too small a
market and there aren't enough alternative manufacturers to choose from. To
add to this, manufacturers won't come into the market to create competition
with alternative products because the market's too small and not financially
worth their while.
There's quite a lot that could be said on this but I couldn't justify the
time it would take to do it right now.
I, personally, believe that the bottom line is that at worst, if you don't
tow the manufacturers line on pricing, that manufacturer could make it
virtually impossible for a seller to obtain the product to sell thus
stifling any hint of competition.
Possibly, if your dealership is based on a contract this may govern what you
can or can't do regarding pricing, I don't know. But If you don't have a
contract and try to sell someone's products off their own bat, as it were,
you could then be open to possible legal proceedings.
A lot of the above is speculation on my part but nothing would surprise me.
Wally Harding
-----Original Message-----
From: access-uk@xxxxxxxxxxxxx [mailto:access-uk@xxxxxxxxxxxxx]On Behalf
Of Robert Stokes
Sent: 30 July 2004 11:33
To: access-uk@xxxxxxxxxxxxx
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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