explain MSRP

[peterforpats]

why do some manufacturers insist on vendors charging what they decide is the proper price for an item? once a vendor pays whatever price they agree on to buy the item why or how can a manufacturer dictate the next sale? if a vendor wants to work on a smaller margin than another why is it legal to stop that? yes, I get a cheaper price from one vendor will undercut sales from another but won't the cheaper vendor order more to keep up with demand? the manufacturer will still make the same amount of money if vendor A buys 10,000 items or they sell 1,000 items to 10 vendors. price fixing should be illegal and I don't understand why vendors (or the law) allows it to happen.

 

[djezewski]

I know what you mean. I have stopped dealing with vendors that do that(I am in the yarn business) I only ran across two of them so far.
If two competitors do it it is called price fixing..but if a manufacturer does it it is o.k.? It doesn't make sense.

 

[Ref Minor]

Some manufacturers want a high retail price so it keeps up their image as a high class product.

It is allowed as other companies can undercut them with their products so it isn't against competition law.

Vendors allow it as the manufacturer refuses to sell them any more product if they sell it cheap. Companies like fasttech get around this by using a front company to buy product from people like Innokin and then selling it cheaper than the MSRP.

 

[EmeraldLeo1982]

Maybe fasttech just sends ninja's down the road a block or two to steal it from the manufacturers warehouse lol.

 

[VV_James]

Here's how I explain it...
Manufacturers set a price and a MOQ (minimum order quantity) and then price discounts for different levels of quantities above the MOQ...

Once we purchase and pay for this product, it belongs to US and we sell it for whatever the .... we want to charge!
We don't believe in price fixing!

You should have heard Joyetech .....ing when we sold eVic starter kits for $60 a pop!

 

[EmeraldLeo1982]

VV_James I wish you guys sold DIY materials. I'd totally order from you since austin, TX would be like 2 day shipping with USPS first class lol.

 

[peterforpats]

Here's how I explain it...
Manufacturers set a price and a MOQ (minimum order quantity) and then price discounts for different levels of quantities above the MOQ...

Once we purchase and pay for this product, it belongs to US and we sell it for whatever the .... we want to charge!
We don't believe in price fixing!

You should have heard Joyetech .....ing when we sold eVic starter kits for $60 a pop!

I understand but I was just on a site where they stated that they would charge what the manufacturer wanted because they wanted to do business in the future with that company. my question is still- if they buy the minimum needed and pay the price what does it matter to the manufacturer if they gave them away? why wouldn't they sell to the same vendor- don't they want to make money?

 

[peterforpats]

Some manufacturers want a high retail price so it keeps up their image as a high class product.

It is allowed as other companies can undercut them with their products so it isn't against competition law.

Vendors allow it as the manufacturer refuses to sell them any more product if they sell it cheap. Companies like FastTech get around this by using a front company to buy product from people like Innokin and then selling it cheaper than the MSRP.

sorry, but I don't understand the 2nd part of your answer- what does it matter what another manufacturer does? how does that effect the sale of their product to their vendors? if you are talking about clones that is between the manufacturers and has nothing to do with demanding a certain price a vendor should charge for their product.

 

[EmeraldLeo1982]

We need an american FastTech! Somebody want to setup a front company to purchase? ....How does the manufacturer even know what the vendor is selling them for atleast for a B&M store. If it's an online store it's only obvious.

 

[Oomee]

Haha the irony of an American complaining about protectionism .

 

[peterforpats]

Haha the irony of an American complaining about protectionism .

why can't I complain? I don't like it in any form even if American companies regularly engage in it. doesn't make it right. what bothers me is the Americans who CLAIM they are for "free markets" and "capitalism" but have no idea what it means. more evil are the people who do know what it means and still want to rig the game......

 

[Oomee]

America as a nation engages it constantly on a global scale and has done for decades .

See the irony in your OP ?

 

[EmeraldLeo1982]

NINJAAAAAAS!!! ...okay I'm done.

 

[SmellYaLaterCigs]

look up "suggested" in the dictionary

 

[Izan]

America as a nation engages it constantly on a global scale and has done for decades .

See the irony in your OP ?

Actually, much like the rest of the world, the people of a nation, UK/US, Et al, are generally nothing like the Governments that control them.
Often government policy is in direct opposition to the will of the people.

Where a person is born is not something they had any control over.

I

 

[Oomee]

Terracotta soldiers!!! ...okay I'm done.

Fixed that for ya

 

[Oomee]

Izan

Never said it was through personal choice , I said it was ironic .

Or put it another way , it's not often you get people complain when they are on the winning side of a deal .

 

[Ref Minor]

sorry, but I don't understand the 2nd part of your answer- what does it matter what another manufacturer does? how does that effect the sale of their product to their vendors? if you are talking about clones that is between the manufacturers and has nothing to do with demanding a certain price a vendor should charge for their product.

You asked the question why it was legal, that's what the answer was. If for example, Joyetech insisted that their Twist was sold for $50 then as consumers could buy a Vision Spinner for $25 it not would be subject to competition law and is legal. If Joyetch and Vision got together to agree to price Twists and Spinners at $50 then it would be illegal under competition law.

 

[Oomee]

You asked the question why it was legal, that's what the answer was. If for example, Joyetech insisted that their Twist was sold for $50 then as consumers could buy a Vision Spinner for $25 it not would be subject to competition law and is legal. If Joyetch and Vision got together to agree to price Twists and Spinners at $50 then it would be illegal under competition law.

Aren't both those companies Chinese ? How can a USA/UK govt do anything .

There is no such practical legal solution that you are referring to .
Fuel prices are fixed , ISPs all charge the same ...the list goes on .

Do a test , take your legal muscle and initiate proceedings against Stormy's .
Let us know how that doesn't work out for you .

 

[Ref Minor]

Aren't both those companies Chinese ? How can a USA/UK govt do anything .

There is no such practical legal solution that you are referring to .
Fuel prices are fixed , ISPs all charge the same ...the list goes on .

Do a test , take your legal muscle and initiate proceedings against Stormy's .
Let us know how that doesn't work out for you .

Yes, both companies are Chinese, however the US Govt has the last word on what gets sold in the US. There are various international trade organisations who set fines for abuse of competition laws, my company was recently fined 600m EUR over price fixing claims. A company that wishes to be involved in international trade needs to obey price fixing rules.

I have no idea who or what Stormy's is so I can't answer that question, however from the tone it seemed to be a flippant comment rather than a real contribution.