[Migmauler]

Mandated minimum advertised prices are almost a standard in retailing and if you think about it it protects the retailers. If you have one or two major retailers advertising significantly below market price they can run other (smaller?) retailers out of business- sort of like when Wal-Mart comes to town. That doesn't mean, as has been said, that the retailers cannot sell the item for any price they see fit, they just can't advertise it. You see the same thing with musical instruments, electronics, appliances,sporting goods,etc. That's the deal when the retailer indicates "Call or e-mail for price"- the price they have on the item is below manufacturer's minimum advertised price.

[flyXwire]

Originally Posted by STARMAN 352ND

I thought that might be the case since Joe Pilot is no longer offering that big discount now on their
Franklin Mint planes as they had done before.
A few hours ago you could still get a F-22 Raptor for 65 but not now..
JP

You're right about JoePilot's move, jp! Just when I was ready to order a couple of items I wanted from them....I get pre-empted with the price hike!

[parsig9]

Me too! They were 31 at Christmas. Bugger!


Good luck FM, I won't pay 60.

[Spinnaker]

I find that quite unbelievable - in New Zealand such practices by a supplier would probably be considered pricing-fixing and anti-competitive, and could result in large fines being imposed. Do such laws not apply in your country?

Originally Posted by tjwgrr

Had lengthy conversation with a Franklin Mint / Armour retailer today.

I learned Franklin Mint is forcing dealers to sign an agreement in which Franklin Mint dictates the minimum advertised prices retailers are allowed to charge for Franklin Mint / Armour models. If a retailer lists, or advertises a model for less than the approved minimum, Franklin Mint will no longer sell to that retailer. This is not suggested retail, but minimum advertised retail.

The dealer I spoke with was quite agitated and felt he should be able to charge what ever the market dictates and his margins allow.

[skidmarksdiecast]

Originally Posted by Spinnaker

I find that quite unbelievable - in New Zealand such practices by a supplier would probably be considered pricing-fixing and anti-competitive, and could result in large fines being imposed. Do such laws not apply in your country?

There are price fixing laws in the US but FM's policy does not constitute price fixing as manufacturers are allowed to implement certain advertising policies to preserve their product's value. Again, retailers can sell for whatever price they feel like. They just can't advertise below a certain price point. Most manufacturers have a policy similar to this. Manufacturer's can't tell you at what price to sell their items-- only that you can't advertise their products below a certain specified amount (there's usually an exemption for older products). If you do advertise below the manufacturer's guidlines, they can stop selling to you. Manufacturers are under no obligation to sell to anyone at wholesale cost.

Price fixing is where otherwise competing businesses agree to sell their similar products at identical prices, which allows them to raise their pricing without the threat of a lower-priced competitor. This is illegal in the US. Controlling actual selling price and controlling advertised price are two completely seperate issues.

I think the issue, that most collectors have (and retailers too, believe it or not), is whether FM's minimum advertised prices are reasonable based on the detail and quality of the models they produce.

[KG_Jag]

There can be no question that such "policies" enforced by contracts of (near?) adhesion have the intent and effect of reducing price based competition within that brand or family of brands, as well as between and among those retailers selling same.

The assumption by the distributing company is that that they have selected and are mandating the optimal price for said company. If that is true, the company's profits are maximized, as are the margins of its dealers, who are restricted from trading volume for the "recommended" per unit mark-up. If not.....

[Spinnaker]

Hi skidmarks,

I recently purchased via the web some parts for my boat from a company in the US. On their website they advertised a "list price" for every item, but also had a link on the item titled something like "Your price if you order today". When I clicked the link it offered a price considerably cheaper than the list price. I'm curious - perhaps they did this because their wholesaler had similar policies to FM? And if so, would this be an option for web-based diecast retailers?

Originally Posted by skidmarksdiecast

There are price fixing laws in the US but FM's policy does not constitute price fixing as manufacturers are allowed to implement certain advertising policies to preserve their product's value. Again, retailers can sell for whatever price they feel like. They just can't advertise below a certain price point. Most manufacturers have a policy similar to this. Manufacturer's can't tell you at what price to sell their items-- only that you can't advertise their products below a certain specified amount (there's usually an exemption for older products). If you do advertise below the manufacturer's guidlines, they can stop selling to you. Manufacturers are under no obligation to sell to anyone at wholesale cost.

Price fixing is where otherwise competing businesses agree to sell their similar products at identical prices, which allows them to raise their pricing without the threat of a lower-priced competitor. This is illegal in the US. Controlling actual selling price and controlling advertised price are two completely seperate issues.

I think the issue, that most collectors have (and retailers too, believe it or not), is whether FM's minimum advertised prices are reasonable based on the detail and quality of the models they produce.

[landrocket]

I have quite a few F Mints and realistically while the moulds are typically good, they produce drab boxes, fixed U/C and the wheels on all of mine don't even roll. I think that if they really want to compete with GMP or Carousel (sp?) they better focus on product improvements and presentation first, then they will see my money in the future. At present, I am only buying stuff which has been made with Canadian liveries which means I'm really not buying much at all!

[Ara1]

"The customer is always.

Right?"

So seems goes FM's goodwill creedo.

Fargan meatheads. "Operation: Customer Is Our Third Priority" is in full swing.

[John Youngs]

To TJWGRR - I understood that FM recently "bailed out" of Armour & that they have new owners. Was that bad information? John