Astro gear pricing

Hello all...

How is that price fixing seems to be permissible with Astro gear? I thought
that practice wasn't legal. But, Televue eyepieces cost exactly the same
regardless of dealer. A PST costs the same. A Meade OTA costs the same.

How is this allowable?

Doink

Try living in Europe, Astro gear operates on a =A31 =3D $1 exchange rate.
ie. bloody expensive!!

To put that into perspective, if you could get a LX90 on a plane as
hand luggage and went over to America and bought one, you'd get a
'free' holiday in USA with the money you'd saved.

It come to something when I can buy eyepieces and get them shipped
shipped 5000 miles for literally half the price of buying them in the
UK.

rant ends.....;O)

Gaz

On Sat, 23 Apr 2005 14:50:36 -0700, "Doink" wrote:

Hello all...

How is that price fixing seems to be permissible with Astro gear? I thought
that practice wasn't legal. But, Televue eyepieces cost exactly the same
regardless of dealer. A PST costs the same. A Meade OTA costs the same.

How is this allowable?

Price fixing is when different manufacturers have a pricing agreement.
That is usually illegal. It is not considered price fixing when one
manufacturer sets the pricing their dealers must use. That practice is
common and perfectly legal.

_________________________________________________

Chris L Peterson
Cloudbait Observatory
http://www.cloudbait.com

why ias it that wall mart can sell bayer aspirin cheaper than you corner
telescope shop
or CVS
"Chris L Peterson" wrote in message
...
On Sat, 23 Apr 2005 14:50:36 -0700, "Doink" wrote:

Hello all...

How is that price fixing seems to be permissible with Astro gear? I
thought
that practice wasn't legal. But, Televue eyepieces cost exactly the same
regardless of dealer. A PST costs the same. A Meade OTA costs the same.

How is this allowable?

Price fixing is when different manufacturers have a pricing agreement.
That is usually illegal. It is not considered price fixing when one
manufacturer sets the pricing their dealers must use. That practice is
common and perfectly legal.

_________________________________________________

Chris L Peterson
Cloudbait Observatory
http://www.cloudbait.com

So if a dealer broke rank, he'd be cut off. Right? I'm surprised there
isn't a gray market. I remember the early days of computer stuff. HP was
that way. But you could always get gray market HP printers from "non
authorized" dealers. There doesn't seem to be a gray market with Astro
stuff.

Doink

"Chris L Peterson" wrote in message
...
On Sat, 23 Apr 2005 14:50:36 -0700, "Doink" wrote:

Hello all...

How is that price fixing seems to be permissible with Astro gear? I
thought
that practice wasn't legal. But, Televue eyepieces cost exactly the same
regardless of dealer. A PST costs the same. A Meade OTA costs the same.

How is this allowable?

Price fixing is when different manufacturers have a pricing agreement.
That is usually illegal. It is not considered price fixing when one
manufacturer sets the pricing their dealers must use. That practice is
common and perfectly legal.

_________________________________________________

Chris L Peterson
Cloudbait Observatory
http://www.cloudbait.com

On Sat, 23 Apr 2005 18:42:05 -0400, "halfro"
wrote:

why ias it that wall mart can sell bayer aspirin cheaper than you corner
telescope shop
or CVS

Because the aspirin company doesn't have dealer contracts, but is just
an ordinary wholesaler. Astronomical equipment makers often have dealers
(because of the limited market size), and set things up to protect those
dealers: geographical area restrictions, price restrictions, etc.

_________________________________________________

Chris L Peterson
Cloudbait Observatory
http://www.cloudbait.com

On 04/24/2005 07:06 AM +0900, Gaz wrote:
Try living in Europe, Astro gear operates on a £1 = $1 exchange rate.
ie. bloody expensive!!

Japan, too. A Celestron NexStar 4 GT carries an MSRP of ~US$1200 here.
Street price is lower, of course, but still ... Ouch.

trane
--
/////////////////////////////////////////////////////////
// Trane Francks Tokyo, Japan
// Practice random kindness and senseless acts of beauty.

It's called "Resale Price Maintenance".

It avoids over-stiff competition between resellers (dealers) which
would force profit margins down.

I still find it simply amazing that dollar-pound parity + local taxes
still exists in a "buying online" world. My credit card may be valid
worldwide. But this is a sick joke when manufacturers choose to deny me
the right to purchase.

It also make the so-called European Union another sick joke when prices
vary across borders. But I can't purchase anything anywhere but at home
from a single national dealer. So the gravy-train rolls on and on and
on and on. Meanwhile the "beurocrats" keep taking their fat-cat
salaries ansd wallowing in expenses-paid luxury.

How are the Chinese, Indians and New (East) Europeans going to afford
to buy Meade? Perhaps that's the point? Rarity value holding prices
artificially high and reduces the need to invest in ever-more
manufacturing capacity? The managers keep getting their salaries
regardless of actual home-produced turnover.

Chris.B

Chris,

I am not exactly sure about the wide variation within the EU that you
describe below. Prices in Greece for Celestron and Meade products is
easily double and triple the pricing in the US. In fact, I am wondering
if this is the primary culprit behind the reason for a lack of interest
in amateur astronomy in this country. Furthermore, should you purchase
something from the US, import duties and taxes on the purchase amount
PLUS the shipping charges adds a further 30-35%.

Imagine someone waiting years to be notified for an AstroPhysics
refractor, dishing out over $9k USD for the scope plus a few minor
accessories and shipping and then to be looking at a further 30-35% in
money out the window for taxes and duties.

As for the Chinese, a serious controversy is gaining momentum in Greece.
During the past twelve months, three people have been FRIED using
Chinese steam irons at home - items that never passed any EU inspection
- and this is a matter being forwarded to the EU for further
investigation and examination.

Anthony.

wrote:

It's called "Resale Price Maintenance".

It avoids over-stiff competition between resellers (dealers) which
would force profit margins down.

I still find it simply amazing that dollar-pound parity + local taxes
still exists in a "buying online" world. My credit card may be valid
worldwide. But this is a sick joke when manufacturers choose to deny me
the right to purchase.

It also make the so-called European Union another sick joke when prices
vary across borders. But I can't purchase anything anywhere but at home
from a single national dealer. So the gravy-train rolls on and on and
on and on. Meanwhile the "beurocrats" keep taking their fat-cat
salaries ansd wallowing in expenses-paid luxury.

How are the Chinese, Indians and New (East) Europeans going to afford
to buy Meade? Perhaps that's the point? Rarity value holding prices
artificially high and reduces the need to invest in ever-more
manufacturing capacity? The managers keep getting their salaries
regardless of actual home-produced turnover.

Chris.B

wrote:
It's called "Resale Price Maintenance".

It avoids over-stiff competition between resellers (dealers) which
would force profit margins down.

That and the tendency of US manufacturers to take only their home market
seriously. They consider European sales a distraction. You only have to
watch what happens when a new product rolls out to see them satisfy all
domestic demand before even one will cross the pond.

I still find it simply amazing that dollar-pound parity + local taxes
still exists in a "buying online" world. My credit card may be valid
worldwide. But this is a sick joke when manufacturers choose to deny me
the right to purchase.

They are entitled to do that though. See Levi Strauss vs Tesco's. If
Tesco's (UK largest supermarket chain) cannot force a legal win on a
high profile case there is no chance for amateur astronomers.

http://www.fashionunited.co.uk/business/media/judge.htm

It also make the so-called European Union another sick joke when prices
vary across borders. But I can't purchase anything anywhere but at home
from a single national dealer. So the gravy-train rolls on and on and
on and on. Meanwhile the "beurocrats" keep taking their fat-cat
salaries ansd wallowing in expenses-paid luxury.

Anything *manufactured* in Europe you can buy from any country you like.
The adoption of the Euro has made pricing a lot more transparent (and
put the parasites that ran money exchange and laundering booths out of
business). It is mildly inconvenient for UK residents still using GBP
unless they have a Euro account. But you can buy any European product
where you like in the EEC online or by mail order, unless there is a
local dealer with a sole dealership franchise. In the latter case you
have to travel in person to make the purchase - modern discount fare
airlines make this possible.

How are the Chinese, Indians and New (East) Europeans going to afford
to buy Meade? Perhaps that's the point? Rarity value holding prices
artificially high and reduces the need to invest in ever-more
manufacturing capacity? The managers keep getting their salaries
regardless of actual home-produced turnover.

There are circumstances where this may be the correct strategy. The job
of a CEO is to maximise the profits for shareholders - and nothing else.

Meade and Celestron were both good instrument companies until they
became obsessed with litigation and took their eye off the ball.

Regards,
Martin Brown