Sunday, August 25, 2019

Price-fixing

Chewy sells a case of a particular cat food at  at $38.66 per case, Amazon sells it at $38.66 per case.  Logic suggests one might offer it at $38.49 and the other at $38.67.  Or whatever.  How is that not "price-fixing?  That's illegal.

We are getting way too controlled be non-competiveness.  Everything costs the same no matter where you go.   That's wrong.

4 comments:

suzanprincess said...

Price fixing is when several entities agree to set the same prices. When two close competitors set the same price it could be price fixing, or it could be knowing that having the same price on some common items steadies the playing field. If the prices vary widely some customers will decamp to the lower priced option, but if they're the same on commonly purchased items that increases the loyalty to the vendor already in use. Surely most vendors spend time and effort in coordinating with or beating other's prices, eh?

A small local chain has recently started omitting in their ads the sale prices of certain cat foods, instead declaring "always on sale" in coupons and ads. The coupon will give a discount on the shelf price, but the amount is unknown until item is purchased, or on questioning the cashier. I noticed that the shelf prices jumped quite a bit, around 20 cents a small can, when they switched from printing the sale prices in the ads. Annoying to me, the consumer, but making it more difficult for their competitors to know the advertiser's prices.

Megan said...

Suzan may be on to something Mark - ie. what you're observing is not strictly speaking 'price fixing' so much as 'price matching'.

Megan
Sydney, Australia

Mark's Mews (Marley, Lori, Loki, and Binq) said...

Price-matching is price-fixing. It takes deliberate pre-knowledge to make the prices the same day by day. Even when the selling manufacturures "suggest" a price, that is price-fixing.

We have gotten too used to it to object, but we should. A properly-run Federal Trade Commission would file charges, but they are run by people from industry who have an interest in keeping a safe playing field for all sellers. Consumers pay the cost.

I think I just decided to support Ellen Warren for President!

pilch92 said...

I agree, it is wrong.

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