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Wrong info "." (archive)

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Posted by Adam M on September 27, 1999 at 13:47:50:

In Reply to: Wrong info Adam M.! posted by . on September 27, 1999 at 09:21:34:

: : Price fixing is illegal, plain and simple. The US's market is based on free enterprise and competition. This is why I can buy a 2 liter bottle of coke/pepsi for $.89 rather then $1.99.

: : The next time you buy groceries, multiply your bill by 150%. The next time you buy electronic equipment, multiply the price by 130%. Are you willing to pay this extra money for the knowledge that no one else got a better price? I'm not!

: : Adam


: Price fixing is not illegal! Now if all the major car manufacturers met and agreed to charge agreed-upon charges, then that is illegal. But that's not called price fixing, it's called collusion. BMW alone fixing its prices is not illegal in any way shape or form. Saturn does it. Bose does it with their consumer products whether it's sold by Best Buy, Circuit City or whomever.

Read Mike W's post below. I think he does a good job of explaining (I don't want to rehash). As far as Saturn, they 'strongly recommend' that their dealerships use the one price selling method. They can't demand the dealerships sell at a specified price, because it is illegal.


: In fact fixed price selling does mean that no one else will pay a better price than you did for the same item. So your last complaint is totally illogical.

Read it again, I think you missed the point. I'll use the bottle of soda as an example again. Lets say the list price on a 2liter coke is $1.99. Some people sell it for that price, but most discount it to $1.50. To increase sales, some stores sell it at $1.25 and/or occasionally have sales for $.89. By your reasoning, you would rather pay $1.99 just so long as everybody is paying $1.99. By my reasoning, I would rather buy it at $1.25 to $1.50, even though some people may get it at $.89. To me it is illogical to pay more money just for the knowledge that no one payed less then I did.


: If you don't like the damned price then don't buy the damned car. And if enough people don't like the damned price, then the damned price will go down. That's what free enterprise is about.


In the case of Saturn and Bose, one of the things I don't like (there are more reasons as well) is what you get for what you pay. I own neither. With free enterprise, if you don't like the price that "Mike's BMW" gives you, then you can go to "Scott's BMW." If Mike wants to gain back some of the sales he is loosing to Scott, he can lower his prices. Thats free enterprise.

If you haven't already, read Mike W's post. It is important not to forget the lessons of the past.

Adam


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