Manufacturers now may set prices, but it will be costly to monitor and enforce that price distribution.
Best Regards Tom.
The exact same thing that happened to government "Of The People, By The People and For The People".
My own expectation, based on my economics education, that the impact of this ruling would be minimal. Manufacturers of most products, not covered by exclusive patents or licenses, have relatively little pricing power. It is very hard to prevent retailers and wholesalers from cheating and selling through gray markets.
i
Let them.
If a manufacturer overprices their Minimum retail price no one will buy it. They'll buy elsewhere or import.
People in general will pat a premium for (Canadian in my case) products manufactured in their home country. But there is a limit to how much they will pay. I think that law allows those who make premium products to ensure that they are not "Given Away" THose who thiink they can set unreasonable retail minimums will price themselves out of the market but those who make "Better" products will prevent them being given away in price wars
If your product isnt that much better there is always china who will be happy to make it for as cheap as the customer demands
What makes you think (ie, what evidence) that gas stations enjoy anything close to monopoly prices? (other than in distant locations and such).
i
It may be used to enshure tax revenues stay constant or increase when the state starts regulating retail prices like in wisconsin. The state may sue a gas station for selling gasoline to cheaply.
Best Regards Tom.
That's not the issue.
The point is that it is the end of discount retailing. All retailers must charge the same.
Walmart must sell a Snickers for the same as the convenience store across the street. The manufacturer sets the price for everyone. Cameras, computers, cars, candybars.
The end of "fair trade" laws in the 1970s was the beginning of modern discount retailing, and this will be the end of it.
How the conservative justices came up with this as more "freedom" is beyond me. A few manufacturers get to apply mob rule against millions of retailers and consumers.
That is not a correct understanding of the ruling.
The ruling said that manufacturers have the right to demand compliance with minimal pricing. (and have the burden of policing the retailers).
In reality, most manufacturers will not be able to insist on such compliance due to lack of pricing power.
It is not very easy to apply mob rule, as retailers and public can easily turn elsewhere, in most cases. Wal-mart suppliers fear Wal-mart, not the other way around.
i
Which is the case.
I think that as far as gas retailing goes, it is competitive.
As far as oil production and refining goes, I have no detailed knowledge to make a judgment. Considering that the President seems to be beholden to oil companies, quite possibly, they managed to create an environment ehere effects of competition are reduced.
i
All retailers have to charge the mfr's LIST PRICE. NO DISCOUNTING or other retailer-sets-his-resale-price freedom.
You must be a kid. States imposed this until the 1970s with "fair trade" laws. That's when the laws were eliminated and "list price" became "MSRP", a suggestion rather than enforced price.
I've been in retailing for long enough to know how it works.
This story could NOT be found via AP web services....
We now have a government "Of the people, By the Lawyers and For the Lawyers"
On Thu, 05 Jul 2007 01:41:44 -0500, with neither quill nor qualm, Richard J Kinch quickly quoth:
If that happens, look for a wholesale loss of all American goods in stores and a 100% importation of goods at 30% of their prices to replace them. Discounted USA goods are having trouble competing already, and this will kill a lot of good, local businesses.
Muckin forons.
- Metaphors Be With You -
On Thu, 05 Jul 2007 00:11:12 -0500, with neither quill nor qualm, Ignoramus17716 quickly quoth:
Yeah, they vary widely here, with nearly THREE CENTS difference between all the stations, all of which change within a day of each other's variance! Oh, there were a few stations down in LoCal which charged for "full service". Only $0.25 more per gallon to check the oil and wipe the windows. Not surprisingly, their Full Service lanes were almost always entirely empty.
Truth!
What could possibly make you think that? Even your definition is screwy (retailing vs. discounting.)
On Thu, 05 Jul 2007 07:02:00 -0500, with neither quill nor qualm, Nick Hull quickly quoth:
You misspelled "Screw the people," Nick. CONgress is made up of lawyers.
- Metaphors Be With You -
My story is very true!!
Traffic jams are a States best friend for generating revenue on gas taxes
Get off your buttocks and search. Jun 26, 5:15 PM EDT Gas stati> azotic wrote:
The only other industry that has managed to fairly tightly "control" the retail prices is the Mattress and Furniture industry. How they do it is by a "Minimum Advertised Price" policy, the wholesalers cut off your supply of mattresses if you advertise a price under MAP.
That makes it easy for the retailers in the industry to cheat on each other, but keeps the price wars from getting too nasty. The common boast in the industry is "We will beat any advertised price." Easy enough when there's still a profit at the MAP.
Gasoline retail stations are under similar constraint - Shell dealers have to buy from Shell, etc., the wholesalers play chess with each other under the plan of "Zone Pricing" - get as much as you can out of each zone, the stations right on the highway by themselves are highest, the ones with competition from other brands on all four corners are a bit lower, and the little out-of-the-way sites are lowest.
And the leverage they have is that the gas station property, building and fixed equipment is all leased from the wholesaler. Break the lease, and they kick you out and get another retailer.
(It's a liability nightmare to own property that has been a gasoline station for the last 75 years in some cases, with buried storage tanks that may have leaked a little over those years, or a lot. They try to sell them, but don't get a lot of takers. Land lease.)
The gas wholesalers are allowed to dictate the minimum mark-up on their product at retail, sell too low and they either won't restock you or they raise the wholesale prices to force the retail higher.
-->--
There are hundreds of hits on google about this topic. MANY of them attribute the story to Associated Press.
how some ever... I searched the AP archives and nothing turned up. And neither did Google when including AP web address
FWIW...
Richard
The espresso machine industry does that as well. The way to competition is through the consumer "secret," of "Give them a call and see if they have any 'open box' specials, or combo deals," you know, where the grinder and espresso machine "package" gets you a big discount over buying the two separately.
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