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PRICE FIXING??? - Printable Version

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PRICE FIXING??? - freerider - 17-07-2008 04:57 PM

As many of you know, I recently listed Autoglym products on my site, because I am selling online and do not have any overheads, and besides which, anyone that doesnt come and collect would still have to pay P&P on the items,

I listed all the products at RRP less +-15%.

Someone has complained to the Autoglym head office in JHB that my prices are not in line with recommendation's and I am now being forced to sell these products at RRP!

RE: PRICE FIXING??? - Woodie - 17-07-2008 07:10 PM

freerider Wrote:Someone has complained to the Autoglym head office in JHB that my prices are not in line with recommendation's and I am now being forced to sell these products at RRP!

Is this not something that can be taken up with the Dept of Trade & Industry. I'm sure it contravenes their trading regulations.

RE: PRICE FIXING??? - freerider - 17-07-2008 07:22 PM

I pay exactly the same price for the products as the next person that wants to re-sell, what I decide to mark up is up to me, not so?

Autoquip sells Autoglym for above RRP.... why not penalise them?? oh wait, because its all about how much money we can make!

RE: PRICE FIXING??? - calypso - 17-07-2008 07:31 PM

We got smacked by Megs and their high mark-ups and now AutoGlym wants to fix their prices too? What happened to good honest competitive pricing?

RE: PRICE FIXING??? - Woodie - 17-07-2008 07:43 PM

I guess the dictionary has been amended since I last consulted it. I always thought that "recommended" implied "this is what we think it should be, but it can be varied".

As a matter of interest Don, did you have to sign any reseller's agreement with Autoglym, and if so did it impose any limitations on pricing?

RE: PRICE FIXING??? - freerider - 17-07-2008 07:48 PM

Nope, didnt have to sign anything.

I find it very suspicious though, that the stuff has only been listed since last thursday and already someone has complained about my pricing!

RE: PRICE FIXING??? - Carn - 17-07-2008 09:19 PM

Simple really, price fixing is illegal in SA as far as I understand it. RRP is just that 'recommended retail', nothing more nothing less.

In the absence of a contract with them I would simply send them an e-mail (possibly cc in Autoglyms HO in Europe attn: legal dept) asking them for confirmation in writing that you are to follow a set, fixed pricing scheme with regards to their products. Furthermore request that they confirm the same stringent rules and pricing structure will be actively enforced upon ALL of their resellers and, should no written confirmation from them be forthcoming, you will deem their initial request to stick to a fixed pricing structure to have been made in error...........I doubt they would be willing to provide you with it Wink

RE: PRICE FIXING??? - freerider - 17-07-2008 09:41 PM

Great, Thanks for the advice guys.

I will be emailing AG first thing tomorrow and bringing all of this to their attention. I just feel sorry for the poor supplier here in the Cape, he got pulled over the coals because I didnt "fix" my prices to what others expect.

RE: PRICE FIXING??? - Carn - 17-07-2008 09:42 PM

Having sat and actually thought about this for a few minutes made me realise how off-putting (sp?) the whole issue really is. If this is the kind of monkey business suppliers are wanting to play, especially in a small emerging detailing market like SA's, I would almost feel compelled to refrain from supporting them purely from an ethical point of view.

What is it with South African companies wanting to rip consumers a new one at every opportunity ?

RE: PRICE FIXING??? - calypso - 17-07-2008 09:56 PM

What i found rather upsetting is that a 'competitor' reported you because you were too competitive. Thats just weak.

RE: PRICE FIXING??? - freerider - 17-07-2008 09:58 PM

I wouldhv done exactly that on the spot, if it wasnt for the supplier down here being one hell of a nice guy! I dont see myself as supporting AG HO but rather helping out the supplier down here to gain a little more exposure.

RE: PRICE FIXING??? - freerider - 17-07-2008 10:00 PM

calypso Wrote:What i found rather upsetting is that a 'competitor' reported you because you were too competitive. Thats just weak.

Yeah, that just got me downright PO'd!

RE: PRICE FIXING??? - springbok - 17-07-2008 10:23 PM

It's outrageous and IMHO probably illegal. If you were selling their product which had obviously "fallen off the back of a truck" you could see them stepping in to try and protect their name and reputation etc. but the fact that you have worked through the regular channels makes it inexcusable.

I think you should approach them first of all on the basis that you run an online shop which is only supported by enthusiasts and your overheads and thus margins are much lower. To what extent is your pricing structure in any way threatening your competitors?

This definitely smacks of price fixing which is illegal but approach cautiously and try and reason with them.

RE: PRICE FIXING??? - Carn - 17-07-2008 10:29 PM

calypso Wrote:What i found rather upsetting is that a 'competitor' reported you because you were too competitive. Thats just weak.

+1......Lame

[Image: duckbi3.jpg]

RE: PRICE FIXING??? - freerider - 22-07-2008 09:28 AM

After seeing what other competitors are selling AG products for, I will be reverting my pricing to what it was! Hammerhead

RE: PRICE FIXING??? - Graham Savage - 28-09-2008 08:26 PM

Cool so I cn consider buying thier stuff now :-)


S'pose... I do need something...

RE: PRICE FIXING??? - freerider - 28-09-2008 09:05 PM

Graham Savage Wrote:Cool so I cn consider buying thier stuff now :-)


S'pose... I do need something...

yeah man, seems to be water under the bridge