Originally Posted by
Edbear
As the importer, I advise the NZ RRP and recommend that the RRP should be adhered to for individual sales as I believe it is fair. I leave it up the my dealers, though, as it is their business and they know their own market as to whether they discount or not.
I'd be unhappy to see competitive discounting between dealers as this would cheapen the brand. In order to alleviate this, when I sign a dealer I ask them what their market is and assure them I will not sign a dealer in their area that would be in direct competition with them.
Yep a recommended price is fine, but they have to be free to charge what they like otherwise it is price setting and thats illegal as far as I know.
Its a fine line as an importer/distributor as to how many resellers you use. The old fashioned thing to do as an importer was to limt your resellers and limit supply to them no matter how big they are so they and you can retain a good price and profit. Too many importers would not give decent discounts based on volume sale either, continuing to supply mum and dad retailers at the same price as a big box retailer that would sell hundreds if not thousands more units. Unfortunately this has become out-moded now that the global market has been opened up and the traditional resellers are now bringing stuff in themselves, bypassing the traditional importer/distributor. Of course the end user is also bringing stuff in themselves bypassing everyone local.
I mentioned vegetables once, but I think I got away with it...........
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