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Korg and Roland accused of preventing online discounts

 
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ITguy54
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Joined: 22 Mar 2015
Posts: 245

PostPosted: Tue Mar 24, 2020 3:58 pm    Post subject: Korg and Roland accused of preventing online discounts Reply with quote

https://www.musicradar.com/amp/news/korg-and-roland-accused-of-preventing-online-discounting-illegally-in-the-uk-customers-lose-out
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average_male
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Joined: 07 Feb 2011
Posts: 276

PostPosted: Tue Mar 24, 2020 9:45 pm    Post subject: Reply with quote

Isn’t this common practice? This is oftener worked around by the seller either:

1) not showing you the price until item is in your online shopping cart

2) or suppressing the manufacture from the online listing

Where 2) is more common with TVs, similar to what Frys Electronics does.

Guess the manufacturer wants to make money at the cost of the customer rather than the seller buying it at cost and selling with minimum profit margins.
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geoelectro
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Joined: 14 Sep 2012
Posts: 1037
Location: Texas

PostPosted: Wed Mar 25, 2020 1:19 pm    Post subject: Reply with quote

average_male wrote:
Isn’t this common practice?

Guess the manufacturer wants to make money at the cost of the customer rather than the seller buying it at cost and selling with minimum profit margins.


You might consider this. A minimum advertised price (MAP) helps encourage more sellers to carry a product.

If I'm considering selling a product and I can see it has no MAP and others are selling it at cut-rate prices because they have the ability due to mass purchasing power I may decide not to carry it. I need to be able to determine a certain return ahead of time before I obligate myself.

MAP pricing encourages retailers to get involved making the product more widely available. They can always sell it for whatever they want ultimately.

I didn't know this practice was illegal in other countries. It's pro buyer but somewhat anti business. Typically people who knock businesses have never had to run one.

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