[Boatanchors] OT Fair Trade Prices

[Rodger Singley]

My doctoral dissertation was on free riding which is a related area.  Part of the rationale for fair trade was it protected full service retailers, who bore the cost of providing service (stock and displays, salespeople, other before and after sale support functions) from the discounters who simply sold the product and somewhat depended upon “free riding” consumers who determined what they wanted/needed from the full service retailer and then bought the product from the discounter.

In the dawn of the PC era, VARs (value added resellers) became another part of the issue.  A VAR typically sold a computer system with additional hardware and peripherals for specialized markets and bought the PC itself from the manufacturer at a discount.  Because of the discount schedule, VARs were motivated to buy more PCs than needed and sell the excess into the gray market channel.  Gray markets are non-counterfeit, legitimate goods that are being sold through a distribution channel not intended by the manufacturer.  Many camera products are readily available through the gray market and the not so careful consumer won’t even be aware their purchase was through a non-authorized channel until they find they have no manufacturer’s warranty.

Rodger WQ9E

Sent from Mail<https://go.microsoft.com/fwlink/?LinkId=550986> for Windows

From: Richard Knoppow<mailto:1oldlens1 at ix.netcom.com>
Sent: Sunday, November 21, 2021 1:21 PM
To: David Stinson<mailto:arc5 at ix.netcom.com>; boatanchors at mailman.qth.net<mailto:boatanchors at mailman.qth.net>
Subject: Re: [Boatanchors] OT Fair Trade Prices

    There is some discussion in the legal paper I linked. One can
also find the records of the congressional investigations of the
processes. It was eventually found to be price fixing, just as
you say. I think the main intention was to prevent cut throat
price competition by dealers, at least in advertising. I wonder
if there are any old timers here who remember actually buying new
stuff back in those days and if they remember if they could get
lower than advertised prices for it. I seem to remember one could
but I was a kid then and never bought anything expensive.
    I get the feeling that ham stores were actually very
competitive. All those faces smiling (mostly) out of  QST pages.
The only one I ever met was Ted Henry. I was applying for a job
and he was a friend of a friend. He was very nice to me but I
didn't get the job.

On 11/21/2021 11:09 AM, David Stinson wrote:
> I think we know this today as "price fixing."
> It was "fair trading" for the sellers; not so much for buyers.
>

--
Richard Knoppow
1oldlens1 at ix.netcom.com
WB6KBL
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