Fixed for a price?

If you thought telescope prices in the UK were suspiciously similar,
think about this story:
================================================== ==
In a fix?

If you've ever looked around magazines and shops, and wondered why
all the prices are so similar, take a read of the following:

I wanted to trade Synta products. These are excellent telescopes for
the money, and I wanted to promote astronomy and observing to as wide
an audience as possible. I would sell via the internet and mail order,
I thought.

But, it's not that easy. The UK agent for Synta told me that, unless
I had a shop or showroom, they wouldn't supply to me. They said this
was because the internet was proving such a fierce source of
competition. So, they like the idea of a free market, but only if the
rules suit them. If they don't, they just won't supply you with
the goods.

So, this is why suckers in the UK (and probably abroad), have to
continue to fork out over-the-odds prices for telescopes. The only way
to compete is to provide 'freebies' like an extra eyepiece or
something, anything to help you sell the product against a competitor.

If you think this stinks, write to the Office of Fair trading
(www.oft.gov.uk.)

And all this time I thought telescope prices were pretty good. Thanks
for enlightening me.

Cant have any sympathy for you mate - sorry! If I had a business that
required a high level of customer service (which I imagine a serious
telescope business would need) I certainly would not want any Tom, Dick
or Harry to set up internet businesses in their bedrooms. Sure recipe
for disaster in my opinion. That aside, with a few exceptions,
telescopes are already bloody cheap - wouldnt everyone agree?

On 18 May 2005 02:30:29 -0700, "coolbreeze"
wrote, in part:

Cant have any sympathy for you mate - sorry! If I had a business that
required a high level of customer service (which I imagine a serious
telescope business would need) I certainly would not want any Tom, Dick
or Harry to set up internet businesses in their bedrooms. Sure recipe
for disaster in my opinion. That aside, with a few exceptions,
telescopes are already bloody cheap - wouldnt everyone agree?

Telescope prices certainly have gone down in real dollars.

But are telescope prices in the U.K. the same, when exchange rates are
factored in, as telescope prices in the United States? If not, part of
the cause may be that the U.K. may be lacking antitrust laws similar to
those of the U.S..

However, the U.K. also has VAT - and television licences. This, despite
having a *Labor* government. One would have thought that a Labor
government would abolish all forms of regressive taxation, in favor of
relying on income taxes, which are graduated in accordance with the
ability to pay.

Of course, it is difficult to avoid something like VAT when one is
competing economically with other countries that also have sales taxes -
because one doesn't charge VAT on exports, but income taxes are folded
into the cost of goods manufactured.

John Savard
http://www.quadibloc.com/index.html
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On Wed, 18 May 2005 16:53:44 GMT, lid
(John Savard) wrote:

But are telescope prices in the U.K. the same, when exchange rates are
factored in, as telescope prices in the United States? If not, part of
the cause may be that the U.K. may be lacking antitrust laws similar to
those of the U.S..

Maybe, but U.S. antitrust laws don't generally prevent a manufacturer
from controlling retail prices of its own product. In the U.S. the
prices of much astronomical gear are largely fixed, and this is legal.

Antitrust issues occur when two independent manufacturers work together
to control prices. I don't see this sort of price fixing occurring in
the U.S. or anywhere else.

_________________________________________________

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

lid (John Savard) wrote:
[snip]
But are telescope prices in the U.K. the same, when exchange rates are
factored in, as telescope prices in the United States? If not, part of
the cause may be that the U.K. may be lacking antitrust laws similar to
those of the U.S..

Are manufacturers in the US obliged to sell to anybody who wishes to
buy, at the same price for everyone?

However, the U.K. also has VAT - and television licences. This, despite
having a *Labor* government. One would have thought that a Labor
government would abolish all forms of regressive taxation, in favor of
relying on income taxes, which are graduated in accordance with the
ability to pay.

You're thinking of Labour as being a socialist party. They aren't (by
UK/European standards). Well, the members still are but Blair's New
Labour isn't very socialist at all. It's further right than the
Liberal Democrats, nominally at the centre of the political spectrum.


Tim
--
Don't tell me I'm still on that feckin' island!