Suggested Selling Prices ?

[stevemj]

I was wondering if any one could please let me know the legal implications of suggested selling prices.

I am a new distributor who is wanting to ask my customers to advertise my products at a suggested selling price on there web-site as many customers are de-valuing the product by advertising at very low prices. I am wanting to give them suggested selling prices to advertise at. I am however happy for them to discount below the suggested selling price just not advertise below the suggest selling price.

Can you please let me know the correct procedure in doing this?

Many thanks

 

[Paul_Rosser]

Depending on the type of product that may be very difficult to arrange as it would mean potential customers would need to contact the seller to find out what price they would be willing to sell for.

If it's B2B sales to known clients then it may be workable, but for B2C sales unless they are high value or exclusive goods then I can't see many members of the public bothering to pick the phone up to ask about discounts.

 

[SamStones]

You need to be very careful with this as price fixing is illegal in the uk. However, ecommerce systems such as magneto do have a Minimum Advertised Price feature which could be used for just this- ie the price isn't displayed until you add the item to your cart. However, I've never really seen the point in this - making customers jump through hoops to find the price of something can't be good for your conversion rate!

Perhaps look into the MAP feature in Magento and see how people are using this.

 

[trevord92]

It's called resale price maintenance and was outlawed in the UK in 1964.

Which doesn't mean it doesn't happen.

Typically manufacturers find an excuse not to supply the people who are lowering the prices - perfumes do it based on the ambience of the retail outlet for instance, even though they make exceptions left right and centre.

Or the manufacturer denies supplying the discounters, even if they are.

You can see minimum advertised price in camera and hi-fi magazines where they show £call.

Not as easy to implement on the web with sites like eBay or Amazon although you can make it a part of your distribution agreement to not sell on those sites.

Basically a minefield so an experienced lawyer would be a good person to consult if it's a big problem.

 

[EZRShelving]

Try to buy the latest kindle, macbook or ipod at anything other than full RRP - price control happens everywhere!

Some distributors will not supply cut price retailers, others demand a certain level of stock to be held and some have incentive schemes for those who retain the brand values (better prices, free delivery etc..)

It is a lot easier to do when your products are in demand though.