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Additional Details
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Grant V | Why is "price fixing" so common? E.g., Ipod, watches...? |
Call me cynical, but it appears that many products have their price fixed. Two examples I can think of as a write this question are Ipods and luxury watches.
With the news that the supermarkets are fixing the price of milk why is it this type of apparent fixing permitted? Why aren't the Competition Commission or the OFT doing anything about this?
Am I right in calling this price fixing? |
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swirlyblue1
 |
Don't confuse high prices with price-fixing. Price-fixing is to do with collusion between sellers. Apple can sell their ipods at any price they choose. If apple were to agree with their competitors how they should set prices, then that would be price-fixing.
There was an excellent example just yesterday, Sainsbury's and Asda were found guilty of fixing milk prices. Now milk's not expensive, in fact the office of fair trading says that milk was being over charged 3p per pint of milk. But it was the collusion between all the parties that was the reason for the verdict of price-fixing. The fines came to ÂŁ118 million!!
Just as an aside, I don't why this barely got any coverage in the news yesterday. Maybe no one cares when we get ripped off. |
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lostintranslation
 |
They will set the price where it reaches an equilibrium of the highest profit. If that changes then the price will also change. |
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kemperk
 |
actually, of hundreds of millions of
items available for sale, fewer than
1% are price fixed.
When you see a set price for something, that is NOT the same
as PRICE fixing.
Often, the items whose prices you
see staying the same are available
from some discounters for less.
IMAGE goods' prices are most rigid
as it helps to perpetuate their
presumed value to the consumer. |
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Peaches
|
The government has not interest in preventing price fixing of luxury items. It is only necessities and monopolies where the government cares about price fixing. |
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nooner
|
Competition Commission? OFT?? Are you referring to the Federal Trade Commission? First of all, you don't even know what "price fixing" is and anyone who thinks the Competition Commission should come out and fix it, shouldn't really be asking the questions. In other words pull your head out of your keister and start reading some books instead of smoking doobies.
Price fixing does not exist in this country between private corporations in this country and it is highly illegal. |
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Barbarian
|
I'm not sure the word price fixing is right but the general idea sounds about right. Manufactures and prime producers have to take a long term view because they have to invest large amounts of cash and effort to generate returns on investment. They therefore do all that is possible to get the right price. In consumer goods they need a chain of confidence in price to get stockists to buy and sell. These stockists have high overheads and wages to pay.
Milk is a different products as it is a basic need and dairies go through good and bad times. If supermarkets are fixing price then they do so as part of a business strategy. Good or bad they seem to always be found out in public.
Consequentially public bodies such as the CC or OFT have to look at the situation and take any necessary action. |
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Lindum
|
Of course they price fix- when the general consumer realise that a 150- to- 200% mark up margin is usual then the whole system will implode |
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