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Fender fined in UK for fixing prices

Discussion in 'Sidewinders Bar & Grille' started by RussV, Oct 9, 2019.

  1. RussV

    RussV Senior Stratmaster

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  2. Chubbles

    Chubbles Strat-Talker

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    The only good thing is, in the end, at least Fender prices aren't as inflated as Gibson.
     
  3. Cerb

    Cerb Most Honored Senior Member Strat-Talk Supporter

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    I don't really get why we say that Gibsons are expensive or that the prices are inflated.

    Over here, Gibson have 12 different models for under $1000, Fender have 0.
     
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  4. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    They haven't been fined yet, they have been accused of price fixing. It's nothing new, Fender still have to present their defence. This has been the way of things for as long as I remember and why Fender guitars have always been more expensive here.
     
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  5. aviamsi

    aviamsi Senior Stratmaster

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    In Israel we have a single dealer that is importing Fender.
    Unfortunately, no competition at all.

    For example, an American Performer Strat/Tele goes for 5100ILS = 1457USD. that's a lot of money.
    American Pro Strat/Tele goes for 6290ILS = 1797USD.
     
  6. Chubbles

    Chubbles Strat-Talker

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    I just meant top of the line Gibsons are 10,000 dollars US. Top of the line Fenders are way less. And Player series Strat are around 700.00 US. A 700 dollar Gibson would probably fall apart.

    I guess it depends on where you live.
     
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  7. Johnny Danger

    Johnny Danger Senior Stratmaster

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    I have to ask, because it's not clear in the linked article, were the retailers able to sell for whatever price they deemed profitable for them, but just not allowed to advertise those prices online? If so, that would mirror a very common practice here in the US and I see zero problem with that setup. I have some background in distribution in another industry and we would have to enforce a similar policy for certain manufacturers.

    The basic argument is that it devalues the brand. If everyone is trying to undercut each other and starts listing things betting on a large quantity of sales at razor thin margins, then retail price becomes a joke and the product becomes something that no one would ever pay full price for. Now a dealer COULD still do that, they just couldn't explicitly list those prices. They could simply say "call for price" or something like that. Some people do "Add to cart to see price" which is kind of on the edge of that policy. It's been a while so I don't know the full details of how they do it here as it varies from manufacturer to manufacturer.
     
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  8. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    It's pretty simple, they're not allowed to do either.
     
  9. Cerb

    Cerb Most Honored Senior Member Strat-Talk Supporter

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    The most expensive Fender I could find over here is $8300, the emost expensive Gibson is $7700.

    The Player series is MIM while even the cheapest Gibsons are MIA, not that it matters but for the sake of comparison we should stick to the same country of manufacturing.

    Why would a $700 Gibson fall apart?

    Edit: That would be the most expensive Stratocaster and the most expensive Les Paul.
     
  10. Johnny Danger

    Johnny Danger Senior Stratmaster

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    I'd love it if someone could link me to a news article that wasn't behind a pay wall and isn't just a copy and paste version of the already linked article. All I can find is "restricting price on online sales" which could mean two very different things. If they are required to list them at X amount, but allowed to sell them for less at their discretion to whomever they want wherever they want, then I don't see an issue. If Fender said they HAD to sell it at X price and offer no discounts advertised or otherwise, then that would be a problem. I'm assuming it must be the latter because the former makes sense to protect the brand while giving the retailer the option to sell at whatever they want when someone calls and says "What's you best price?"
     
  11. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    They're not allowed to fix prices online or offline. They're not allowed to fix prices.
     
  12. Smokey3

    Smokey3 Strat-Talker

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    They worry about fender, yet car dealership have MSRP, then dealer hold back, then cost and then what the dealership actually pays for the cars. I was in the car business for 25 year's. And then all the owners in a 100 mile radius get together and agree on what will be the cheapest they will sale each model of car for. And this is well known by those who are supposed to keep this from happening. Just kinda makes me mad that they don't enforce things equally Thanks
     
  13. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    If we could enforce our laws over there, it would be interesting, hasn't been done since 1776...
     
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  14. Johnny Danger

    Johnny Danger Senior Stratmaster

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    Minimum advertised price is not a fixed price. A fixed minimum final sales price is a fixed price.
     
  15. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    I'm sure that the people investigating understand our laws better than people from another country on an internet forum. I'll leave it to them and the courts.
     
  16. hexnut

    hexnut Strat-Talker

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    Heck Rickenbacker wont let their dealers list the prices on line period.
     
  17. Thrup'ny Bit

    Thrup'ny Bit Grand Master Curmudgeon Strat-Talk Supporter

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    Maybe we should just ban all imports from the US, it wouldn't be the first time...
     
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  18. Johnny Danger

    Johnny Danger Senior Stratmaster

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    If you would re read my original post you would find I am in no way trying to redefine/interpret UK law but actually asking for clarification. If someone with any journalistic skill could actually report some facts as to how the law is structured and whether or not the law defines a fixed advertised price as a fixed price (which, you know, it isn't), I would find that to be very interesting.
     
  19. Cerb

    Cerb Most Honored Senior Member Strat-Talk Supporter

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    Mind those boots ;)
     
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  20. Johnny Danger

    Johnny Danger Senior Stratmaster

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    Well all my semantics are for nothing (as usual). I guess I just needed to google "Retail Price Maintenance" which is explicitly price fixing regardless of in store or online. I think the focus being put towards online sales in every copy and paste article is what made me question exactly what was being disputed. My only experience was with minimum advertised price as I tended to work with companies that didn't break laws.
     
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