bt is correct. The technical term is price fixing and it's illegal in this
country http://www.usdoj.gov/atr/public/guidelines/pfbrprimer.pdf The
system that is set up by high end fly fishing manufacturers (and many
other's - golf, apparel, cosmetics, etc. etc.) to circumvent the law is
contracting with non-employee representatives/dealers who allegedly set
prices. Of course it is really the manufacturers who set the prices but
they insulate themselves with this transparent system. The manufacturers
readily admit to this system to side step the law but it seems the U.S.
Dept. of Justice has bigger fish to fry. Price fixing statutes are only
given rare, token enforcement. It is contrary to the principle of a free
market place regardless of the fact that it is prevalent.
Keith Bell
-----Original Message-----
From: Bug Thrower [mailto:[EMAIL PROTECTED]]
Sent: Friday, September 14, 2001 7:14 PM
To: [EMAIL PROTECTED]
Subject: Re: Retailing 101 (was: RE: Okuma reel ?)
Actually Kent, on a Okuma reel a fly shop would only make about $5. Okuma is
not a price protected product and it's margins are pitiful, this is why you
won't find it in a flyshop, 99% of all products in flyshops are price
protected(ever notice why Ross reels are the same price at all the shops),
generally margins are 40% mark-up, this means if a shop buys it for $60 it
sell for $99.95.
bt
----- Original Message -----
From: <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Friday, September 14, 2001 5:06 PM
Subject: Re: Retailing 101 (was: RE: Okuma reel ?)
> Good points, Kent. I always appreciate your input.
>
> A fly shop definetly has to make enough profit to stay in business so I
can't
> fault them on that one and the mark up scenario makes sense. I also
agree
> that fly shops provide service to a market niche that is somewhat
different
> then the mass retailers that tend to carry the brand names with lower
profit
> margins.
>
> Thanks for the retailing 101 lesson. I often don't consider things from
that
> angle.
>
> Mike W
>
>
