The Perfume Cartel

F

flatline2010

Active Member
Joined
Dec 7, 2010
Messages
49
Reaction score
0
I know its not as terrible as fixing prices for bread or milk, but I was at Sandton buying the better half some perfume today, so I did the consumer thing and checked out The Red square , Woolworths, Edgars and Stuttafords for her favourite brand.... amazingly enough, R695 for 50ml , no matter where I check ... So in a little desperation I say to the Red Square salesman mmm R695 strange it's R650 at Woolworths hoping to open a bit of negotiation.... Impossible he says all the perfume in all the shops has to be the same price as its set by the supplier. WTF if that ain't price fixing what is, no difference between companies ? :twisted::mad::confused:
 
The way I understand it price fixing is when different manufacturers will agree to a selling price. I.e. all car manufacturers come together and agree to sell cars for no less than Rx.xx. In this way they can push up the price as high as they want to, because there is no competition for them outside the price bracket they agreed to. The perfume manufacturer still have his competition, even if he agrees a selling price with his resellers.
 
yeah you're right, still pisses me off, where the hell is the different value at the different shops.....
 
Lol, tough luck bru, that perfume just wont't smell as sexy as it used to before it came out of your pocket.
 
Its probably more like Rcommended Selling Price from the supplier.
Same thing usually happens when a new PS3 bundle is released, XBOX console etc.
Sony & Micro$oft provide retailer with a RSP
 
Officially the supplier may not dictate price. End of story. Unofficially the supplier tells the retailers that he can't dictate price but if said retailer doesn't make it Rxxx then perhaps next month there will be no stock for this particular retailer...

Another variation involves the authorized supplier list & suddenly a retailer isn't on it anymore.
 
HavocXphere said:
Officially the supplier may not dictate price. End of story. Unofficially the supplier tells the retailers that he can't dictate price but if said retailer doesn't make it Rxxx then perhaps next month there will be no stock for this particular retailer...

Another variation involves the authorized supplier list & suddenly a retailer isn't on it anymore.
Click to expand...


And the BIG BOLD printing on the box that says reccommended price = R500 and here you're selling it for R600.
Doesn't look good
 
Yeah it don't work like that in the UK everyone is at a different price point.... Walmart you cannot come soon enough....
 
The only liquid I'm willing to spend this kind of money on is the kind I can drink from 750ml bottles :-)
 
Mantis said:
And the BIG BOLD printing on the box that says reccommended price = R500 and here you're selling it for R600.
Doesn't look good
Click to expand...

One of my wifes supplies (Hannon Cosmetics) was warning the store not to sell more than RRP as with the new companies act there is apparently some law governing this practice - yet to find the law but if it did exist I would say YES!

Also suppliers cannot dictate price but where the salesman (and my wife) gets it wrong is that companies often subsidise advertising for their clients and have an agreement that their product may never be advertised below a price.

Sealy Posturepeadic have this policy with their posturepeadic range, 10yrs ago a bed store was not allowed to advertise a double base set for less than R2999 else they lost the rights to sell the product. But a salesman was still allowed to quote and sell below that price.
 
But a salesman was still allowed to quote and sell below that price. ---> Thats the problem, the salesman at Red Square was more angry that Woolworths may be selling it for R20 less as this was not the price (agreed price maybe ??) ...... its just pretty ****ty.... Naks thanks for the http://www.ascotdirect.co.za/ site, will certainly use that in the future....
 
flatline2010 said:
But a salesman was still allowed to quote and sell below that price. ---> Thats the problem, the salesman at Red Square was more angry that Woolworths may be selling it for R20 less as this was not the price (agreed price maybe ??) ...... its just pretty ****ty.... Naks thanks for the http://www.ascotdirect.co.za/ site, will certainly use that in the future....
Click to expand...

probably just the salesman doesnt know that the RRP only means recomended price. From personal experince most edgars staff are not the sharpest tools in the shed.
 
Just checked that link and prices are good. Got a price on White Diamonds for my wife yesterday from the chemist where I always purchase and the site is R59 cheaper.

Oh, and always talk to your chemist with regards tot he price of perfume as most will be open to price negotiations.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X