Retail Price Maintenance

L

LynnBob

Joined
Feb 17, 2000
Messages
273
Well...I was reading some stuff the other day about retail price maintenance (I'm a marketing professor...if that makes it any less weird). This particular case I found reminded me of CRK. Is their pricing policy legal? I mean we all know you can find a Sebenza multiple places for exactly the same price...full retail. Anyway...I'd be interested in your thoughts on this and CRK's policies.

Here's a link to a decription of the Playmobil case....

A portion of the text follows...edited for brevity...

<font face="Verdana, Arial" size="2">
TUESDAY, JANUARY 31, 1995

PLAYMOBIL AGREES TO STOP FIXING RETAIL PRICES OF TOYS AFTER JUSTICE DEPARTMENT CHARGED THE PRACTICE ELIMINATED COMPETITION

WASHINGTON, D.C. -- The Department of Justice reached a settlement today with Playmobil USA Inc., one of the nation's largest specialty toy companies, that will stop the company from fixing resale prices of its toys sold to retail stores.

Playmobil agreed to end its illegal price fixing efforts after the Department of Justice's Antitrust Division charged that the practices eliminated competition among retail stores.

The Department filed a civil antitrust suit and proposed settlement in U.S. District Court in Washington, D.C., which accused Playmobil USA, headquartered in Dayton, New Jersey, of reaching agreements on retail price levels with certain dealers and threatening others with termination in order to induce them to cease discounting.

The Department stated that for the past several years the company, pursuant to a written resale price policy, has regularly published resale price ranges for all of its products. In enforcing the policy, Playmobil reached direct and express agreements with a number of its dealers to follow published prices, often only after specifically threatening the dealer with termination as a result of complaints by other dealers. The complaint also alleged that Playmobil USA enforced adherence to minimum resale prices at the request of dealers that sought to end discounting by competing retailers.

According to the Department, these actions were violations of the Sherman Act's prohibition on resale price maintenance under applicable Supreme Court cases.

If approved by the court, the proposed consent decree between the Department and Playmobil would settle the suit and be in effect for 10 years. The settlement bars Playmobil from entering into retail price agreements with its dealers and from threatening to terminate dealers from discounting.

For a period of five years, the decree would prohibit Playmobil from establishing a minimum advertised price policy that withholds advertising rebates from a dealer who advertises Playmobil products at a discount. The five year prohibition
would permit Playmobil dealers to establish their pricing levels in a market free from the taint of Playmobil's illegal price
coercion.
</font>
Click to expand...

Comments?



[This message has been edited by LynnBob (edited 04-25-2001).]
 
As a dealer of CRK, I have never seen,signed nor been verbally informed of any such agreements... it is more than likely that the mark ups are small and the demand is high and there is a wait from the factory generally speaking. I have sold certain models at above retail and some below and will again. I have never been chastized other than a couple of guys not wanting to spend the 15-20.00 premium I was askin' for a wood inlay that was in hand and ready to go with known "wood" ... the prices do vary just not too much to the "down side"

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If You Abide in Him then,"All His Promises are YES and AMEN"
 
By the way as a professor I would think that your manners would be a little "better", I mean to come to somebody's "house" and cast disparaging remarks seems in poor form and tactless... Sorta like me coming to your class during a large important symposium and mentioning that "some similarities" could be made between you and a professor whom is only a professor because they can not get a job in the "real" world. Now you are more than likely not inept but it might affect someone's view upon you whether true or not... and that would not be very nice. Now if I really needed to know if you were indeed inept, I should ask you directly or be in your classes, not just stand up and shout that you are very similar to another inept professor in front of your students and faculty.


 
"Pricing Policy Illegal".......good God...here we go again..........I'm with you Paul
smile.gif
I see no relation at all of CRK and unfair pricing policies.....

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Knives & Things
Mike Payne
 
We had better start an investigation. While we are at it let's look at Chrysler, I hear they are selling those PT Cruisers at full retail (or more), and all the Honda dealers are asking full retail for the S2000, let's not even start on the Audi TT. Funny thing is you can always get a good discount at the Hundai dealer, no full retail there. They must just be a more law abiding company.

Good luck to you,
Rick
 
Listen...I know I'm ruffling feathers...but I'm a Sebenza lover myself. I had, at one time, four. I had to sell three last year due to one of my son's medical problems...needed quick cash. It killed me. Now...I'm thinking I need a small sebenza again...and...I happened to be reading some stuff about this...etc...so...sorry if I've offended anyone. But...I think this question is out there for a lot of knife buyers.

What worries me is not the price (full retail)...it's a great knife. What worries me is the lack of variability in the prices. Everywhere I've looked...on the web...at gunshows...the price is the same...down to the penny. Name me another knife that goes for the exact same price...down to the penny. If the market is "free" there will be some variation. If everyone is selling it for the exact same price...it looks bad. I'm not saying it is bad...it just looks "improper." Even if mark-ups are small...and demand is high...someone...somewhere should be selling small sebenzas for $297.39...just to gain that little bit of advantage...

Again, sorry for bringing this up in the CRK "house". It seems to me that here at BF people get really, really protective of their knives. Oh, don't say anything bad about Emersons on the Emerson forum, etc. Except for the Spyderco forum...that seems a bit more laid-back. I'm sorry that this bugs me...but it does.
 
I'm new here but here it goes if you check various sites on the net you will find small price differences.Also some dealers offer dual thumbstuds at the same price as some offer a single or you can find polished blades for the same price as the standard.
Price fixing? try buying gas in Canada.

 
Wow! A marketing professor who believes it looks "improper" for a product to be sold at the same price by all the dealers. What a bothersome statement. Bothersome because it makes one wonder what students are being taught.

There are dealers who sell CRK at other than retail. Your research is shallow, so is your belief.



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John F Jensen
"Your Quality Distributor"
619-475-3633
 
Regarding CRK pricing policy: if, in fact they even have a pricing policy is probably none of our concern and certainly none of our business.

If CRK pricing is very consistent in the marketplace, then they are in some pretty esteemed company, i.e. Rolex, Mercedes, Harley-Davidson, Breitling ... get the idea?
 
Professor, is that like a teacher?
rolleyes.gif


Do you own a Sebenza?

May be full retail is charged, because there is no problem getting it.

Everything is not discounted.

If you did your homework you would have seen this has been discussed before.

If this bothered you; you could have asked this in the General Forum instead of Mr. Reeve's Forum.


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Rick Gray - Left Handers Unite
 
Note to self...only say good things on the CRK forum.

Look...I'm seeing $305 everywhere I look for small sebenzas. The places I've visited don't have the same price on other knives. Live with it. It's weird enough to notice...ok?

Anyway, price maintenance is not always bad. In point of fact, sometimes it is used by manufacturers to prevent price gouging on the part of retailers. That could even be the case here. Perhaps CRK is maintaining a lower price than the market might dictate...thereby benefiting us...??? Or, it could be a weird coincidence.

As I've said...I got curious 'cause I'm trying to replace my small sebenza. And...odd pricing practices are my business...as a consumer. And...it is not only improper and odd for all retailers to charge the same price, it is, again under certain circumstances, illegal.

Again, not trying to gore some holy cow. Perhaps I asked this in a provocative manner...no offense was intended by my style...it just strikes me as odd...that's all.
 
What's wierd is to see Apple computers selling for the same price by mail order or at the retail stores. Even when an old model is being discounted, everyone is selling it at the same price. Smells fishy to me.

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Ed Woo
 
Well...you couldn't have looked EVERYWHERE. I got my new Small Sebenza for a significantly better price than you quote.
smile.gif


Will

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Mendacity is the
system we live in.
 
I have to agree with the last post.

I got a large for less than the price you are seeing everywhere and a small for even less. Both NIB still wrapped in the tissue
biggrin.gif


Both from dealers on this Forum whom I had dealt with in the past and established a relationship with. Thats the great thing about BF, a little common courtesy and respect goes a long way.

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"Don't get even, get odd"
 
Professor,

I like that note to self; I hope you don't mine if I use it.
smile.gif


You are correct; you should not talk bad about CRK's here; this is his forum.

You asked the question as if you asked it to your class.

This is not your class.

As has been previously mentioned; if you have a dealer you can get them for less.

I'm sorry if this seemes rough on you, but it is the Chris Reeve Forum.
smile.gif





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Rick Gray - Left Handers Unite
 
If you are going to go to the trouble of using the fact that you are a Professor to lend credibility to your speculations, at least put some true research data behind your statements.

It took me all of 2 seconds to find a dealer with prices that were less than the MSRP. And funny, I didn't have to even leave the server that this site runs upon...

Brandon
 
CRK does not have a written pricing policy, we have no agreement that our dealers are asked to sign. We ask them only to represent our product fairly and honestly.

Our knives represent exceptional quality, limited production and a fair price. We believe wholeheartedly in free-market business – but we also believe in integrity, correct representation and accountability.

It’s okay to criticize on our Forum, but when it becomes vicious or personal (directed towards us or anyone else) then it becomes unacceptable. Sure, it is much nicer to read compliments but Freedom of Speech is one of the [many] reasons why we are in this country.

Anne
 
I wouldn't normally reply to something like this, but I had to add my 2 cents worth.

It seems to me that this is a perfect example of a free market. If dealers can sell knives at above retail then good for them, after all they sell knives to make money. People seem to be willing to buy the entire line of CR knives at the prices offered so why lower the prices. As soon as people stop buying the knives then the dealers might lower prices in order to entice buyers, but I don't see that happening with CR knives in the near future. Just a foot note I bought a large seb a few months ago and it has been my EDC knife since then. I could ask for more in a folder so I would say the price was more than worth it.
 
Even without Anne’s clear statement the answer to the question should have been obvious. Market demands set price discounts and with CRK’s waiting list and high quality product they appear to be able to sell all they can at close to retail. There is no strong incentive for distributors to discount. Companies that set price floors are usually doing so to signal the market about perceived quality – not a problem CRK seems to have.
 
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