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> Guitar maker fined £4.5m for illegally preventing price discounts
Mertay
Jan 22 2020, 01:27 PM
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Jan 22 2020, 01:27 PM


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https://www.gov.uk/government/news/guitar-m...XxmI49DRqcLUlR8

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Todd Simpson
Jan 22 2020, 07:19 PM
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Jan 22 2020, 07:19 PM


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Here is the headline from that link just to save folks a click smile.gif

Guitar maker fined £4.5m for illegally preventing price discounts
Fender doing some PRICE FIXING. Making sure nobody sells below a certain price. This keeps the sale and resale value stable even if market forces are trying to drive the price down. There are so many guitar builders these days, all using the same factories, just changing the branding on the instruments, that Fender is having a hard time staying competitive imho. There are only so many baby boomers who are gonna pay top dollar for a strat. There are wads of younger folks who are going out and buying the cheapest SOLAR guitar instead. Ola said that the cheapest model, shocker, was the most popular. After all, it looks cool, and looks similar to the top tier model that costs way more.

Now that Ibanez have begun making strats essentially, (see the guys from POLYPHIA and their signature Ibanez axes), fender is in real trouble.
here is the polyphia ibby. Looks like a strat to me much more than a "super strat" and thats a "mini bucker" not a full humbucker.
Attached Image



Ouch!!! Fender gets a bit of a slap for not giving discounts. hey Fender!! Promo codes are your friends smile.gif


QUOTE (Mertay @ Jan 22 2020, 08:27 AM) *

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This post has been edited by Todd Simpson: Jan 22 2020, 07:29 PM
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AK Rich
Jan 30 2020, 03:13 AM
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Jan 30 2020, 03:13 AM


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Well that's interesting. As far as I knew, setting a minimum price on new products for a licensed dealer was commonplace, at least here in the states. Back in the early 90's I was a rep for H.O. Watersports and Hyperlite (which is actually part of H.O. or at least it was back then) selling things like waterskis, wakeboards, tubes and other various products and accessories. It was stated right in my contract with them that I could not sell items below certain set prices or below a certain percentage of their prices.
I was kind of disappointed about that clause actually because since I was selling out of my home and had a low overhead that I could afford to make a little less profit and be able to steer more customers my way and away from the bigger dealers that may have big storefronts or marinas etc. It turned out though that I was still able to sell more products than my bigger competitors because I could still undercut them selling at the minimum price and was the only place that would allow customers to demo some products before they decided whether or not to buy since I had a place on the lake and a boat. It was my belief that the wakeboards and waterskis would sell themselves if I let folks try them and maybe even throw in a free lesson if they were beginners to make sure they got up and got a taste of riding them. The 2 marinas on the lake weren't too happy about that but there was nothing they could do even though they did complain. cool.gif

https://www.hosports.com/
https://www.hyperlite.com/en/

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This post has been edited by AK Rich: Jan 30 2020, 03:26 AM
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klasaine
Jan 30 2020, 03:42 AM
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Jan 30 2020, 03:42 AM


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In the US a manufacturer is absolutely allowed to set a MAP - minimum advertised price.
There are loop holes ...
Last years model, discontinued model, scratch and dent, floor demo item, returned item, B stock, etc.

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AK Rich
Jan 30 2020, 04:31 AM
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Jan 30 2020, 04:31 AM


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QUOTE (klasaine @ Jan 29 2020, 05:42 PM) *
In the US a manufacturer is absolutely allowed to set a MAP - minimum advertised price.
There are loop holes ...
Last years model, discontinued model, scratch and dent, floor demo item, returned item, B stock, etc.

There ya go, MAP! I couldn't think of that earlier. I always ask about that when buying at the local music stores. I wonder what the big deal is in the UK? It doesn't seem like an unfair practice at all to me even though back when it applied to me as a dealer, my first impression of the practice was negative. In the end it didn't really matter as I was still the top seller in the region for a time.

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This post has been edited by AK Rich: Jan 30 2020, 04:32 AM
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