Klarinet Archive - Posting 000004.txt from 2006/08

From: Joseph Wakeling <joseph.wakeling@-----.net>
Subj: Re: [kl] Buffet Pricefixing??
Date: Tue, 01 Aug 2006 09:46:55 -0400

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Mark Charette wrote:
> As stated earlier, minimum price might not be all bad - it may stop the
> huge distributors, who can afford loss-leaders or can get by with really
> skinny margins, or in fact might try and corner the market, from
> crowding out the small. Assuming that the wholesale costs don't vary
> wildly ... which may or may not be true.

... and it makes a lot of sense for a product like a musical instrument,
where there's a lot of sense in protecting the small suppliers who may
be the only people in a particular location where people can actually go
to test out instruments.

The thing about minimum price---as opposed to "coercion"---is that, as a
manufacturer you surely have the right to choose who you sell to, and
some of the conditions under which that sale takes place. "If you are a
retailer and you want to buy this stock, a condition is you sell it for
no less than xxxx." As a retailer you are not *obliged* to buy so no
one is forcing you to do anything. The conditions of sale are open and
understood, and you can get stock of similar products from other
manufacturers who don't place this restriction.

It's very different from selling stuff, but then putting pressures or
demands on people (or simply engaging in cooperation to keep the price
high) that falls outside the sales contract.

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