Can a supplier dictate an RRP to a seller?
Discussion
Unless it is a newspaper or magazine (IIRC price fixing is allowed for these items) then price fixing is indeed illegal
I don't think a supplier asking you to adjust prices in line with rrp is per se illegal
However, making it a condition of trade is illegal
For that reason, sending such an email is foolish as it could be evidence of attempted price fixing if the supplier later withdraws supply to you (no supplier is going to cite your retail pricing as the reason for not supplying you)
If you don't price somewhere in line with RRP, your supply of said goods from said supplier is likely to be stopped or, if the supplier has any sense, your prices will go up by the difference necessary to mean that you can only achieve your current margin by selling at (or slightly above) rrp
I don't think a supplier asking you to adjust prices in line with rrp is per se illegal
However, making it a condition of trade is illegal
For that reason, sending such an email is foolish as it could be evidence of attempted price fixing if the supplier later withdraws supply to you (no supplier is going to cite your retail pricing as the reason for not supplying you)
If you don't price somewhere in line with RRP, your supply of said goods from said supplier is likely to be stopped or, if the supplier has any sense, your prices will go up by the difference necessary to mean that you can only achieve your current margin by selling at (or slightly above) rrp
Thanks for the replies. I'm pretty sure the supply will stop selling to us but i've got the hump and told them so.
I'll show the emails to my solicitor. It just annoys me. We sell everything new with a 35% margin and they are emailing us telling us to raise our prices and that all other sellers have. If we don't they will stop supplying us.
If they did stop supplying us, it wouldn't make that much difference to us (profit wise) overall but it's just the principal of it that's annoyed me.
I'll show the emails to my solicitor. It just annoys me. We sell everything new with a 35% margin and they are emailing us telling us to raise our prices and that all other sellers have. If we don't they will stop supplying us.
If they did stop supplying us, it wouldn't make that much difference to us (profit wise) overall but it's just the principal of it that's annoyed me.
jammy_basturd said:
Is the supplier/company in question a global sportswear brand?
One would hope that such a company wouldn't let someone as flicking stupid as the person writing to the OP near a computer...So many people fail to remember one of the golden rules - "Never write down what only ever needs to be said."
If they really have written an email to you that says if you do not increase your retail selling price then they will stop supplying you then they are bonkers
You should contact the CMA forthwith
either using this form https://www.gov.uk/government/publications/report-...
or given them a ring and discuss the email with them first 020 3738 6000
You should contact the CMA forthwith
either using this form https://www.gov.uk/government/publications/report-...
or given them a ring and discuss the email with them first 020 3738 6000
Rude-boy said:
ne would hope that such a company wouldn't let someone as flicking stupid as the person writing to the OP near a computer...
So many people fail to remember one of the golden rules - "Never write down what only ever needs to be said."
Unless all of your phone calls are recorded as a matter of course, in which case tell them over a coffee!So many people fail to remember one of the golden rules - "Never write down what only ever needs to be said."
Nothing you can do about it. Its the way of the world. I have seen many many companies do it. Maybe I'm now one of the ones that does it? Who knows? 
If all the retailers start undercutting eachother it devalues the product and is bad for everyone. The alternative for the manufacturer is to bin off all their retailers and deal direct.
If you are making good margins on it suck up the instruction and try using upselling or offers to push you above competitors.
If all the retailers start undercutting eachother it devalues the product and is bad for everyone. The alternative for the manufacturer is to bin off all their retailers and deal direct.
If you are making good margins on it suck up the instruction and try using upselling or offers to push you above competitors.
fellatthefirst said:
I have had an email from a supplier of our's today asking us to amend our pricing to be in line with the suppliers RRP.
Now i'm pretty sure that's against the law? Surely that would constitute as price fixing?
Anyone on here in the know?
Are you a Rolex retailer?Now i'm pretty sure that's against the law? Surely that would constitute as price fixing?
Anyone on here in the know?
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