Anti competitive behaviour / price fixing?

[scm5436]

I have a new company which is trying to set up in a completely different market to the one we operate in now (it's very consumer focussed, rather than the business related tech market we're in now).

As well as the whole supply chain being a bit 'backward' compared to the tech supply chain we're also finding a lot of wholesalers / distributors / manufacturers that are refusing to do business with 'internet only' stores.

Presumably this is an attempt to stop discounters coming in and ruining the margins for everyone.

While I think this is a good idea (those pesky discounters hurt our margins too!), it's kind of annoying that they refuse to trade with us - so I'm somewhat conflicted, as I agree with them in principle, but at the same time it's hurting my business! :|

But is this behaviour actually allowed by law? Isn't is anti competitive and/or price fixing? I note the margins are much higher in this particular market than others we operate in and most people are selling at or close to the full MRSP...

So although there may not be any direct collusion, there may be some nod nod wink wink let's just keep those internet people out and we'll be free to charge full price without any competition...

Any thoughts?

 

[imaggroup]

I've come across this before when trying to buy certain products trade, one of the common phrases I was told was that it's to "protect the brand image".

There's always a way around it though, approach a bricks and mortar store that sells the products you're looking to buy see if they'll supply you at a slight mark up over trade if you buy in decent quantities.... you'll get a lot of no's but you might just find someone who's happy to make a few quid extra.