Re: [APML] Price fixing; was: 12" & 14" LX200

["Bert Katzung" <katzung1@attbi.com>]

Hi Alan:
I'm no economist, but my understanding of price fixing is when different
companies, which claim to be competing with each other, agree to hold their
prices at comparable levels. (This is supposedly against the antitrust laws
although certain administrations look the other way when big energy
companies do it to California.) The uniform pricing among distributors that
you describe is the result of individual manufacturers requiring that their
distributors advertise prices within a certain range and no lower. If the
distributor doesn't go along, he doesn't get that product. Unfortunately,
this is absolutely standard practice in practically all fields and there is
no law against it. For example, Nikon and Canon cameras are often listed by
B&H and other discounters as "Call for price!" and in the newspapers,
advertisers say "Price too low to publish!"
So please don't blame the distributors for doing what they have to do in
order to sell Meade, Celestron, TeleVue, or any of the popular brands.
Bert

Bert Katzung
katzung1@attbi.com
www.astronomy-images.com

----- Original Message -----
From: "Alan Voetsch" <critter12952@yahoo.com>
To: <astro-photo@seds.org>
Sent: Tuesday, December 17, 2002 5:42 PM
Subject: RE: [APML] 12" & 14" LX200


> --- Gene Horr <genehorr@houston.rr.com> wrote:
> > > -----Original Message-----
> > > Personally, I
> > > believe there has been price inflation, and price
> > > fixing, involved here for a long time.
>
> > Nope.  Look at the EDGAR filings.  The LX200 line is
> > the lowest profit
> > center Meade has as a percentage of sales and by
> > gross profit.  The
> > big money is in the "cheapo" 'scopes.
>
> Hi gene,
>
> OK, what do you call it when all the distributors sell
> products at exactly the same price? That's what I
> refer to as 'fixing'. Those prices have to be included
> as part of the contract with Meade, or else there
> would be more of a variation. Where is the competition
> among the distributors? I find that strange. Maybe
> that's just the way it is among small-market items.
>
> And still Meade can afford to lower prices $1000 each
> on the 12"s and not go bankrupt. I don't know who
> Edgar is <g> but the LXs are certainly a great buy
> now. If I had the cash, I'd buy dozens and sell them
> later after prices go back up.
>
> > Now look at the competitors.  To go to a marginally
> > better product
> > (say a Parks OTA on a Losmandy mount) is a material
> > jump in cost.
>
> Yep, there aren't a lot of options in that range.
> That's why Meade has it mostly sewn up. I know many
> don't like Meade, but still you have to admit that you
> can buy a hell of a product for 2-3 grand. In my case,
> I still have not outgrown what the LX200 can do for
> me, and I've been using them for 9 years. I do want
> the option of different f/ls, which is why I've got a
> TV-85 now too. RC's are in my future too... right
> Greg? :-)
>
> Alan
>
>
>
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