Will this kill Amazon and other online sellers?

[Michael Weber]

This article from the NY Times is about the Supreme Courts decision yesterday to overturn almost 100 years of tradition and allow manufactures to set and enforce minimum prices. Looks like if your planning to buy anything online you better do it soon. This ruling will effect any discounter, online or not.
http://www.nytimes.com/2007/06/29/washington/29bizcourt.html

edit... Just clicked on the link to confirm I got it correct. Took a few seconds for the article to pop up after the website appears.

[David G Baker]

I wonder if the decision will do that much damage because some retailers raise their prices quite a bit over the manufacturers suggested retail price. The ruling could encourage a lot more importing of foreign goods as well.

[Henry Cavanaugh]

Not understanding the Sherman Anti trust laws as it stands now. Someone like festool will only allow its dealers to sell at one price. What is actually changing?

[Scott Loven]

They will continue to get around it by offering free shipping, free extras, catigory discounts, and/or by refusing to sell a companies merchandise if they set a minium price.
Scott

[Jim Becker]

I do not believe this ruling is going to have a major effect as it is not pointed at individual companies who already can set minimum pricing. This ruling is relative to multiple companies "agreeing" on minimum pricing and anti-trust/collusion. Perhaps one of our woodworking attorneys will give their quick (but non-binding ) thoughts on this action by the court...

[Bob Childress]

The Supreme Court decision is more likely to help certain high-end brands maintain their product niche. It is unlikely to have much impact on major consumer brands which already face stiff competition.

In our world, the decision means that Festool, for example, can safely enforce its no-discount rules for its distributors. But Festool is a very small part of the WW market. I cannot imagine DeWalt trying this because there are too many alternatives to DeWalt products for it to make sense. Plus, their dealers would raise holy heck.

Dealers get caught in the middle. On the one hand, one can argue that they should be able to set prices anywhere they wish, even at a loss, if that is their desire. On the other hand, many of us have lamented the demise of the full-service "mom and pop" hardware store. And why did they go out of business? Because discounters could undercut them on price.

The only other major tool player that might go for it is Fein.

[Bob Childress]

I do not believe this ruling is going to have a major effect as it is not pointed at individual companies who already can set minimum pricing. This ruling is relative to multiple companies "agreeing" on minimum pricing and anti-trust/collusion. Perhaps one of our woodworking attorneys will give their quick (but non-binding ) thoughts on this action by the court...

I am afraid I don't agree, Jim. It is the first category that is directly addressed by the decision. The second category remains illegal as it was.

[Bonnie Campbell]

I know when we bought our Husqavarna riding mowers they're priced at the manufactures price. And we were told not to expect to find them any lower. Businesses either sell at the manufactures price or not at all.

[Jim Becker]

Bob, when I made my comments, it was based on news articles on the air, not the NYT article...which I have now read. Therefore, I agree, that this may have some bearing on discounters. But I also know that many manufacturers have effectively had minimum pricing rules of various kinds for a long time. They may have been "creative", but they were there.

[Scott Loven]

Festool sets a minimum advertised price (MAP) and will not continue to sell to a company that advertises below that price. When you own something you can sell it for any price you want, no company can stop you, but they can stop selling to you if you do not follow their policy.
Scott

[Bob Childress]

Bob, when I made my comments, it was based on news articles on the air, not the NYT article...which I have now read. Therefore, I agree, that this may have some bearing on discounters. But I also know that many manufacturers have effectively had minimum pricing rules of various kinds for a long time. They may have been "creative", but they were there.

Now you're quite right about that. Sony springs to mind.

[Jim Becker]

Sony was one that I was thinking of...

[Cliff Rohrabacher]

I think this was a wrong ruling.

Have you any idea how bloody much we pay for stuff???

I got a $4000.00 Texas Sizzler III, BBQ grill for $2000.00 just because the manufacturer and the retailer were having a pissing match over discounts and I got the last one that was on the floor. The maker was angry at the deep discounts the retailer was offering and was refusing to sell to them unless they bent the knee.

So they ended up not doing business any more and I got a steal.


I just bought two April Aire Dehumidifiers ( one is a 90 pint a day model and the other is a 150 pint a day unit).
I got 'em both for $2800.00 - shipped.

The local retailer (a HVAC installer) wanted $4000.00 for just one unit and there was no installation. The units are to dry a cellar ( the second for my shop) so there was not any ducting. Set it down run a bit of poly tube connect a little giant pump and plug it in.

Then I bought the two little giant pumps on FLEAAAAA-BAYYYY for $58.00 (both for that) when every retailer I found wanted $48 each.

I think the removal of pricing freedoms is a scary thing.

[Cecil Arnold]

OMG, I completely agree with Cliff, and that's scary.

[Michael Weber]

I think the removal of pricing freedoms is a scary thing.

This is my thinking as well. You can count on Big Business and the rich and powerful people that run them to turn this to their advantage. As control on business is removed, business because of human nature will become bigger and greedier at the cost of you know who. After all, business is just a big contest. Do we want to leave the foxes in control of the hen houses? Not me, I prefer a little control to moderate and regulate possible unbridled greed. Only the government has the power to do that. Remember energy deregulation? The older I get the less conservative I become.