This action on the part of Hagen is an obvious response to its many store-based retailers who are screaming bloody murder about the vast amount of business that they are losing to the web-based sellers. It's simple, the web sellers do not have any overhead, so they can afford to sell the same product for much less. I have a cirlce of retailers that I deal with frequently and they all tell me the same thing. IMO, this demand by Hagen is nothing more than an experiment and is doomed to fail. First, the markup on aquarium equipment, etc., by retailers is often astronomical....we've all seen it. If a guy wants to open an aquarium store in a strip mall and has to pay an exorbitant rent, I sympathize with him but it's his decision. If he can't compete with a web-based outfit, then he either has to lower his prices, improve his service or admit defeat. Finally, as far as "service" per se, I'm not sure that these stores really "stand behind" the stuff they sell to the extent that they would have us believe. Certainly, I have seen a great deal of reluctance to replace equipment, etc. This reminds me of the government attemting to protect the US auto industry from Japanese competition during the 70s....not precisely the same thing, but close enough to merit consideration. That failed too. The loser here is the customer.
Fx5 Minimum Advertised Price
- Thread starter IITUFFTOBEATII
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jdryden;1485224; said:
Thanks for making that call, way more effort than I wanted to put into it.
Thanks to you too Johnptc I had a feeling you had experience with the topic...
New question. If what was posted earlier about the retailers unit price is true, $150 a piece, than how is the MAP of $300 justified? I understand the economics of running a business, overhead, risk and such.... but a 100% markup on dry goods?
mkman;1486614; said:
Once again whatever the market will bare, if it's $400 don't buy one...It also would probably put that retailer out of business for not being competitive....
yep told me the same thing. however fluval had great customer service and replaced the part and gave me a new lid n tube free. as far as this price fixing its just sad. they are right on the legal boundary of price fixing though.IITUFFTOBEATII;1483614; said:
its not price fixing...... its controlling the advertised price
not the final sale price
i dont really see how it matters one way or another.....the dealer can sell it for $1 if they want
not the final sale price
i dont really see how it matters one way or another.....the dealer can sell it for $1 if they want
I understand why they are doing this, so that retailers that put these on Ebay can't have a low ball starting point that hoses their local retailers. The local guys that take on inventory and parts, and there is an associated cost for them. Someone could sell them for 1$, but not on Ebay. You would have to start at the MAP if you're selling on Ebay....
