Unfair business practices

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It was illegal price fixing, since around 1911, until just recently (in the last couple weeks) when the US Supreme Court struck down those restrictions. Now the manufacturers can set a minimum selling price just like the minimum advertised prices that had been common practice. -- JeffB remove no.spam. to email
Mike Dobony wrote:

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sander, on sale all day at $ 89.00......but worth less that $ 20.00.
For Festool to keep doing what they're doing, they need to do what they do. Apple does it. BMW does it. Quality costs money, and so does the integrity of their sales network.
I, for one, am glad to see the North American market finally 'getting it'. The European model works. Give the people what they came for.... and not some let's-see-what-the-hell-we-can-get-away-with marketing scheme.
My granma said it best: "I am too poor to buy cheap stuff."
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wrote:

It's sad that at one time B&D was the best until it was sold along with Dewalt etc, etc to a Canadian (I think) conglomerate and then it all became marketing crap for the most dollars. My choice of handtools now is Milwaukee. Heavier than I would like but lasts forever and I have been a major consumer of electric handtools.

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wrote:

I wanted a Milwaukee drywall gun, but Lowes discontinued carrying them and took on some cheap junk that was already worn out brand new on the shelf! I didn't have time to run around and take off work to get the good stuff.
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B&D wasn't sold. It is based in Towson, MD and is publicly traded stock.
You are right about the quality decline. I have a B&D circular saw, jig saw and corded drill from the 70's and they are still going strong. They are all B&D trade line that became rebranded as the Dewalt line. I wouldn't buy any tool with B&D on it today. No complaints with Dewalt.
Dave
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Digger wrote: ...

Au contraire...
www.blackanddecker.com
2004 - Black & Decker announce the purchase of the Tools Group from Pentair, Inc. (NYSE: PNR) for approximately $775 million in cash. The Tools Group, which includes the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and FLEX businesses, had sales of $1.08 billion and operating profit of $82 million in 2003.
--
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wrote:

??????????????? You mean the OLD North American model that once made America great. B&D is only good for minutes. Never had any good B&D products and neither did my dad. I was always driving into the city to buy parts to fix that stupid drill.

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But why should a manufacturer be allowed to influence what profit margin a retailer wants to maintain on an item? (Hypothetical numbers used.) If Festool sells a borg an item wholesale for $100 and the RRP is, say, $149 that's a 49% markup. But if the borg is happy with a 20% markup and wants to sell it for $120 that's nobody's business besides the borg's. That's what capitalist competition is all about. That's (one reason, anyway) why Sam Walton died a grillionaire.
Something is fishy here.
FoggyTown
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FoggyTown wrote:
> If Festool sells a borg an item wholesale for $100 and the RRP > is, say, $149 that's a 49% markup.
That is exactly what they DO NOT do.
See earlier post RE: AGENCY.
Lew
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You've not had retail experience, I see. That's a 33% markup in retail parlance. Markup as percentage of selling price.
The manufacturer is attempting to keep his retailers in business by keeping them from cutting each others' throats with discounts. He usually gives rebates or price breaks to those who sell the most, unfortunately, which puts the little guy at a big disadvantage if the big guy passes his savings on to the consumer. Always looked with envy on those who didn't have to make cash flow decisions to make minimum purchase amounts to please a single customer. Sometimes I had to say I couldn't even order what he wanted, even though that was a half-truth.
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George,

I agree. I think what Festool and others (Tormek, I think) are also doing is avoid having to have only the largest, most successful (in terms of pushing units) stores be the only places to buy their products. While we might not like having to buy at full retail, often is the refrain heard from this group is that you should buy the best you can afford. With that, where is it written that we always deserve a price break?
I make sure I buy a book from my local bookseller now and then even tho I know I can get it from Amazon. I want them to continue to be around. They provide excellant service and carry other things I like to buy than just books.
Same with woodworking. Saves me time to have a woodworking store like Woodcraft to buy a variety of items than having to chase around town. Sure I'd like to get some deal going, who doesn't. But the case here, is (and as was ruled by SCOTUS) this retail pricing isn't illegal.
MJ Wallace
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FoggyTown wrote:

Using your example, the manufacturer may very well say, "Hmm, Borg is satisfied with a 20% markup, so lets sell the item to Borg for $125. They can then mark it up to $149 and everybody's on the same page."
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110...then the next guys says...who cares??? Can't make any money this way...and drops all interest in supporting the line.
Next?
Nobody carries it.
You HAVE to allow people to make a buck. Milking them dry is NOT a solution!!!! Do YOU want to work for nothing???
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RicodJour wrote:

Those Bastards!
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