Just been looking at monitor prices MSI for instance I notice that the price on here is almost exactly the same as everywhere else. So it looks top me as thought the price is being fixed possibly by the manufacturer, am right to think this?
Are monitor prices fixed ?
- Thread starter quish11
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I recall many of the firms making LCD displays where fined billions for price fixing some years ago. I don't think they would do it again.
So do you think it's just a coincidence that all the retailers as selling this MSI monitor for almost exactly the same price as each other MSI MPG 341CQPX QD-OLED 34 Inch UWQHD
Its not coincidence but there will be a price they sell to a supplier at and then an RRP. The difference between the two is what little the supplier can make, so if there's not much room, then suppliers aren't going to intentionally make themselves suffer.
MSI quite often have promotions reducing prices and this normally applies across different suppliers, so it may just be that there isn't much margin to offer different pricing at any other times
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Of course it's not a coincidence.
MSI will sell the monitor to retailers at a set price - then provide a suggeted retail price. OCUK (or other retailers) can sell it at that price, or they can run promotions for themselves that would cut into their own profit margins. MSI may also offer a promotion at some point to a specific retailer or to all (i.e. drop the price by 10% and however many you sell, we'll pay you X amount).
This is how it works in any B2B business.
Typically manufacturers have a target price they're aiming for in the shops. They know roughly what the retailers want as a margin.
If you imagine - just as an example - that it's 10%, and they want the product to be in shops for £999, they'll sell it at ~£900, and let the retailer know that the RRP is £999.
Some retailers will go with that, because it fits their model, others might sometimes decide to reduce the price because they want to shift more stock etc.
Price fixing would be if they forced the retailers to all have the exact same pricing and threatened them if not, or if the manufacturers all got together and said "hey, lets not sell any monitors for less than £900".
You can buy a can of coke with a £1 label printed on it - and most retailers will then sell it for that price. Similar principle.
If you imagine - just as an example - that it's 10%, and they want the product to be in shops for £999, they'll sell it at ~£900, and let the retailer know that the RRP is £999.
Some retailers will go with that, because it fits their model, others might sometimes decide to reduce the price because they want to shift more stock etc.
Price fixing would be if they forced the retailers to all have the exact same pricing and threatened them if not, or if the manufacturers all got together and said "hey, lets not sell any monitors for less than £900".
You can buy a can of coke with a £1 label printed on it - and most retailers will then sell it for that price. Similar principle.
It's not a coincidence that the same monitor costs the same to every retailer, and they are operating in the same trading environment and probably aiming for similar margins, and also know that in a world of online price-comparison websites, there is little incentive to compete on price significantly.
If retailers did compete aggressively on stuff like this, it would be race to the bottom very quickly and it wouldn't be worth anyone's time actually selling the damn things.
