Love-Hounds-request@GAFFA.MIT.EDU (12/21/90)
Really-From: derek%sunstroke@sdsu.edu (Derek Langsford) Andy Gough stated: > Well, I know what he's going to say about the U.S. prices anyhow. It is >illegal under the anti-trust laws for a manufacturer to set the retail prices >for its products. So the retailer is free to set whatever price he can get >away with. Manufacturers try to get around this in various ways, the primary >one being the printing of a "Manufacturer's Suggested Retail Price" on the >package. > So EMI has no control over the price in the U.S.. In other countries >they probably do. True, it is not possible or legal to control the price where it is not legal to sell it. I have been curious about CDs which come in different versions in the US and elsewhere. Importers rarely touch stuff which has precisely the same song selection (parallel import restrictions) yet they deal with import CDs of the same album if they have extra tracks on them compared to the US release. They flout the regulations then. This would seem to apply to the boxed set where the b-sides discs are not available in the US otherwise on CD. If the situation is related to copyright of an artist rather than specific songs I am not sure I understand why these importers have a double standard. Any ideas? > You also say, "The only justification for such prices is because it is >what the market will bare. I personally believe that consumers deserve more >respect." I wonder what alternative to the free market system you are >proposing? If you were EMI, or an owner of a record store, what policy would >you use to price the box set? Would you sell them for $125 when you could >sell just as many for $175? I do not advocate a completely free market. And no I am not a Communist. There has to be some regulation or we'd be choking on polluted air as we die of poisoning from unregulated products. I think there should be a balance between the free market and regulation. I am not going to suggest what that balance would be. Ideally if I were running a business I would strike a balance between making a fair profit to maintain business and perhaps growth but I would not try to rip off the customer. It is likely I probably would not stay in business long, I suppose. I think adequate profit for the boxed set should be approximately the same percentage that is made on other regular import CDs. Cost of a normal import is on average $16 to a store. It sells for around $20. Thus 25% seems appropriate. At $125 cost I would charge approx $155. That is a lot cheaper than what most stores charge in the US. Anything above that is excessve profit making IMHO. Extra shipping costs to the store might add a little extra so perhaps $160 is also fair. Still, this is far less than the average US price. I commend those who are being competitive with this price. I believe that establishing a good relationship with a clientele and expansion of said by word of mouth due to fairness and good service is ideally how a business should be run. In the UK I am convinced that CD prices are artificially high due to excessive profiteering by various links in the chain from manufacturer to customer. This is my last post for a week. I'll read my flack in a week or so :) Happy holidays everyone and thank you for adding to my life this past year. Here's to a fanTasTiK 1991! Derek derek@sunstroke.sdsu.edu