Guitar manufacturer fined for price fixing

Discussion in 'General Discussion' started by mark cassidy, Jan 22, 2020.

  1. mark cassidy

    mark cassidy New Member

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    Read in the Guardian this morning (UK) that Fender have been fined 4.5 million pounds for price fixing in the UK. The article said that Fender EU was found guilty of pressuring online sales outfits to push prices higher. It also said that the head office for Fender is in Arizona. News to me.
     
  2. RickP

    RickP One Guitar Short...

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    Do you have a link to the article? I’d like to read it. Fender has locations all over, but they do have a major location in Scottsdale, Arizona. Maybe the home office these days.
     
  3. shinksma

    shinksma What? I get a title?

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  4. Plugske

    Plugske You plug it in, it turns you on.

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  5. jxe

    jxe babe en der wood

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    in the late 60s a precision bass cost as much as a vauxhall viva.
     
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  6. RickP

    RickP One Guitar Short...

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    That is an extremely common practice in the US, but then there’s no law I am aware of preventing it. I’ve been told by retailers that’s the policy on PRS... no discounting. I’m sure there’s arguments on both sides of that aisle, depending on whether you’re a manufacturer or a buyer.

    But it’s clearly not legal to do so there. Perhaps I need to include U.K. venders in my searching habits!
     
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  7. Alnus Rubra

    Alnus Rubra Loving nature’s wonders

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    You should, especially Guitar Guitar, who have some cracking deals!
     
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  8. RickP

    RickP One Guitar Short...

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    Thanks! I will do that.
     
  9. shinksma

    shinksma What? I get a title?

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    So the UK Gov't article has links to what I guess they consider "ground rules" for retail pricing. It includes the following statement:

    RPM can be indirect. You may still be involved in an unlawful RPM agreement where a supplier:

    • imposes restrictions on how far you can discount its product
    • prevents or limits your ability to advertise lower prices online (so-called ‘minimum advertised price policies’)
    My bold emphasis. PRS imposes a MAP policy on their US retailers (which I guess is legal, otherwise they'd be in trouble), but I guess they cannot (should not?) do the same in the UK, which is interesting, because online pricing does look pretty uniform over there - but maybe they tend to stick to "RRP" as a base, but are free to offer sale prices as they see fit, which I do see a few of here and there.
     
  10. LSchefman

    LSchefman Hears Tones

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    No wonder; it was easier to play bass parts on a Fender than a Vauxhall (or its fender).
     
  11. dmatthews

    dmatthews Dave's not here...

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    Always sounded better with more drive.
     
  12. jxe

    jxe babe en der wood

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    in those days all the good players were in motown, playing buick and oldsmobile basses.

     
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  13. bodia

    bodia Authorities said.....best leave it.....unsolved

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    That's not necessarily true with regards to PRS. It's kind of grey. They have a MAP (Minimum Advertised Price) that the dealer must adhere to on new guitars. But, if you call a dealer, they will almost always negotiate with you. They can sell it for less than MAP, they just can't list it that way. There are ways around this, as well.
     
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  14. veinbuster

    veinbuster Zombie Three, DFZ

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    Yes, this is how they work. The dealer can sell for as little as they want.
    There are circumstances when MAP doesn’t apply, like a discontinued model.
     
  15. jxe

    jxe babe en der wood

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    i need to find a new dealer. cue lou reed music.

     
  16. RickP

    RickP One Guitar Short...

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    Apparently, I need to look to some smaller outlets when shopping PRS then. This was told to me less than two months ago when shopping for a 594, so my experience was recent. Live and learn...
     
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