Statement on price matching policies

Post by **Dollstudio** » Sun Oct 29, 2017 12:57 pm

Hi,

I made this post about a month ago to draw some attention on a practise I consider highly harmful for the doll business - aggressive so called "best price" and/or "price matching policies".

Examples for this can be found on TDF:

: price-match-policy-1.jpg (32.3 KiB) Viewed 1444 times

: price-match-policy-2.jpg (11.31 KiB) Viewed 1444 times

Both vendors are TDF accredited and advertise their price matching policy on TDF.

Both vendors do not advertise a special sale for a limited time; these are permanent claims which are thusly permanently harmful.

In the initial post I explained why this practise is harmful for the doll business in general. And from a vendor point of view I have experienced the effects. These effects are that sales do not just drop, but become zero.

One possible approach to counter the harmful effects is price regulation through manufacturers with a minimum retail price and - that's the key part - enforcing it.

The outcome of that ping-pong game with two or three price matching vendors is most obvious; it will necessarily result in either prices dropping below cost level or the applicable vendors not satisfying their claims which would make their sales pitch dishonest.

Customers need to decide if they want to play this game. My position as stated above stands - neither I nor my vendor friends take part in destroying the market with price matching policies.

Sandro

Post by **Nescio50** » Sun Oct 29, 2017 1:04 pm

mandos wrote:Are you sure?

Here in The Netherlands it's strictly forbidden for a manufacturer to enforce a fixed or minimum retail price.
Source: https://www.mededinging.nl/mag-u-een-af ... -opleggen/ (sorry, it's in Dutch, added to show that this is not just a claim but a fact).

ZZZZ · Post by **ZZZZ** » Sun Oct 29, 2017 1:06 pm

If the price matching ping-pong can't be stopped, maybe "Doll Insurance"/"Doll Warranties" should be a separate business?

Post by **Dollstudio** » Sun Oct 29, 2017 1:28 pm

@Nescio: If Google translates it correctly, that is truly scary reading. So even if a manufacturer would be willing to attempt price regulation, a legal environment like this would take all instruments off their hands and leave everything to the forces of the free market:

If a supplier determines or in any way enforces a resale price (by threatening sanctions such as delivery refusal), this will be considered as a vertical price commitment. This is strictly prohibited.

So assuming a Chinese doll maker would try to implement a "Retail Price Protocol", he could cut off a Dutch vendor who violates the "Retail Price Protocol" by refusing to keep supplying the Dutch vendor. But according to Dutch law, the Chinese manufacturer would violate local Dutch law and could be held liable, so the manufacturer would get into a dilemma.

To avoid European law to be applicable, the Chinese manufacturer would state in the contract, that "the Law of the People’s Republic Of China shall be applicable for this agreement". So in the end, that would be a case of international contractual law lottery.

In Germany there are several exceptions (e.g. books), but the general sitation is similar - recommended retail prices are allowed, but enforcing fixed prices can collide with competition law. If other countries have similar laws, any minimum retail prices would be legally irrelevant.

Sounds like a catch 22 for any attempts of price regulation.

Sandro

Post by **Booty Call Dolls** » Sun Oct 29, 2017 1:45 pm

The manufacturers should control the market more, like they do in the jewelry, optics and wristwatch business. You sell it lower that what we say is minimum --> you loose the right to sell our product.

All the TDF manufactures could if they really wanted to.

I get a kick out of those TDF vendors who have a pop up on their site stating " someone in Atlanta just bought a YL155" and then you see the SAME exact pop 30 minutes later or the next day.....
V/r
BCD

Post by **Nescio50** » Sun Oct 29, 2017 1:51 pm

@Sandro, sure, in The Netherlands this type of price regulation is strictly prohibited. There have been lawsuits, delivery refusal based on retail pricing is not allowed.
I guess this is based on EU law but I don't have proof (a link) of that right now.
In international trade (Chinese manufacturer, EU vendor) I guess WTO regulations will apply.

dullahan · Post by **dullahan** » Sun Oct 29, 2017 1:55 pm

Booty Call Dolls wrote: I get a kick out of those TDF vendors who have a pop up on their site stating " someone in Atlanta just bought a YL155" and then you see the SAME exact pop 30 minutes later or the next day.....
V/r
BCD

Yeah those are not live sales. They are real sales but the plugin lies and says that it has "just been purchased". Unfortunately those are effective enough to work so they aren't going anywhere. Shady? Yes. Illegal? Unfortunately no.

Post by **Booty Call Dolls** » Sun Oct 29, 2017 3:21 pm

harvey48,
In regards to WM, that is because they like Climax want their vendors to sell.
That is their business model and it has worked for them.
BCD

harvey48 · Post by **harvey48** » Sun Oct 29, 2017 4:50 pm

Booty Call Dolls wrote:harvey48,
In regards to WM, that is because they like Climax want their vendors to sell.
That is their business model and it has worked for them.
BCD

Why? So the vendors have the problems IF the doll is defective and the mfg bears NO responsibility?

Post by **Booty Call Dolls** » Sun Oct 29, 2017 5:22 pm

Nope.
The responsibility is two fold.
I have had to get BCD family members new dolls as I am sure Sandro has.
We need to work with our supplier to make it happen if need be.
BCD

Pron · Post by **Pron** » Sun Oct 29, 2017 7:06 pm

Price fixing or whatever you want to call it is illegal in many countries.
( https://en.wikipedia.org/wiki/Price_fixing )
Knowing this problem as a vendor (nothing regarding dolls) , I'm sure even if it would be legal it won't help.
Knowing the production price of Chinese plastic products, it's no wonder many new manufacturers show up to sell dolls for much lower prices and make good profit with it.
Known manufacturers can raise the price, but this will only work for short time. It's always the customer who makes the price and helps the ones with a better offer.
Dreaming about high prices for cheap products normally doesn't work for vendors and manufacturers in the long run

haremlover · Post by **haremlover** » Sun Oct 29, 2017 7:11 pm

Booty Call Dolls wrote: I get a kick out of those TDF vendors who have a pop up on their site stating " someone in Atlanta just bought a YL155" and then you see the SAME exact pop 30 minutes later or the next day.....
V/r
BCD

[/quote]

Yes - it's for that reason that such a vendor for me has less credibility and why for that reason if I hear of a complaint about a doll behaving in an out of the ordinary way, I take it seriously and more-so than a seller who is more focussed on quality than hot selling.

If a seller has such a system on their website then I'm willing to contemplate that such a seller is capable of other ruses in the course of their business and it hardens the absolute of need in robust investigation when queries are raised.

Best wishes

Harem

Meso · Post by **Meso** » Sun Oct 29, 2017 8:20 pm

What this thread is about is the manufacture's right to not let their product be devalued in advertising. The Digital Millennium Copyright Act (U.S) implements two world treaties of 1996, that protects manufacturers in the area of the perceived value of their products. That is, they have the legal right to control what their product may be advertised at - not sold at. Price matching is legal (again, U.S.), as it's up to the seller (brick & mortar store or ecom) if they wish to price match.
Please understand: this is what I do for a living. Everyday I deal with CEO's, National Sales Directors, one down the line on it. They come to me because I'm the expert in the industry when it concerns MAP. Minimum Advertise Pricing (MAP) has been around in the U.S. for a decade now (I know as I was on ground floor when it started). The U.K. doesn't recognize it (which is ass-backwards, but that talk is for another time), nor does China recognize it.
Point is, U.S. doll vendors may cry when a price war breaks out, but that's capitalism at it's best. So sorry you're loosing out as us customers are choosing others to deliver the dolls you sell. We love you. We really do. Your customer service may be the best in the world, but when it comes right down to it, if you aren't able to beat the other vendor's price, well, it's been nice knowing you (don't blame me, I didn't invent the U.s. business structure).