Retail Price Maintenance is not illegal in SA, as it is in the EU. This law prohibits suppliers from increasing prices on already held stock due to exchange rate variances. Most of the PC component suppliers I deal with increase their prices as soon as there is a twitch in the exchange rate, even when this stock is lying on the shelf unsold. The excuse used it that it will cost them more to restock, yet they are profiteering on the exchange rate fluctuation.
One trick to circumvent RPM in the UK is to create so-called "bonded stock". This is used by car part suppliers who can maintain to HM Customs and Excise that a portion of their stock is being kept for a particular customer since it saves this customer from ordering too long in advance. Of course this may or may not be true but is too cumbersome to investigate. Honda in Houndslow were fined £120 000 for purporting to hold over £2 million in bonded stock that they said was meant for Honda dealers in the UK. A customs officer noted some serial numbers and went back to trace them 6 months later and found they had been sold to private customers and small motor spares dealers.
One trick to circumvent RPM in the UK is to create so-called "bonded stock". This is used by car part suppliers who can maintain to HM Customs and Excise that a portion of their stock is being kept for a particular customer since it saves this customer from ordering too long in advance. Of course this may or may not be true but is too cumbersome to investigate. Honda in Houndslow were fined £120 000 for purporting to hold over £2 million in bonded stock that they said was meant for Honda dealers in the UK. A customs officer noted some serial numbers and went back to trace them 6 months later and found they had been sold to private customers and small motor spares dealers.
