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'Easi File; Minimum Advertised Price or Illegal Price Fixing, what's the real difference?'

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Easi File; Minimum Advertised Price or Illegal Price Fixing, what's the real difference?

By Vicki at 08/19/2009 13:24

It is with a heavy heart for the welfare of our customers that I am letting you know that Office1000 will no longer be carrying the Easi File products on our website.

It is a decision that does not come lightly. In fact, in an uncertain economy, does it make sense to cut an entire line of products? In this case, it makes perfect sense.

When we founded Office1000, we sought to offer our customers a fair price and give them as much information as we had to give in order to make an informed purchasing decision.

What happened in the case of Easi File?

The answer is that when we first started carrying the Easi File line of products, it was through one of our trusted and reputable manufacturers carrying a complimentary line of products to Easi File. The products were good sellers, as we priced them fairly, they shipped quickly and everyone was happy.

Then, a short time ago, we were informed by our manufacturer that they were no longer carrying the Easi File line; and that we would have to obtain them directly from the manufacturer (Easi File).

I didn't give it too much thought, since I wasn't sure what the reasoning was, but I had no problem contacting the manufacturer directly and setting up to go direct.

When I received an email from a representative of Easi File, in which was provided all of the necessary documents to begin doing business as a dealer directly, I found a clue to perhaps why the other manufacturer stopped carrying the products. That may be completely false and is just a hunch on my part. What I do know is that contained in one of the required documents (The Dealer Registration Form) there was the following wordage which, in effect, was the death sentence of the products being carried on our website.

Directly from their form:

Minimum Advertised Pricing

Dealer agrees it will not advertise a discount and/or net price on Easi File product reflecting greater than 25% off the current list price.

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In case you don't know exactly what that means (because I surely didn't understand), it says that they are limiting what we can ADVERTISE the price of their products to be.

So in effect for an internet dealer, we can't sell it to you for less than 25% off their list price without violating the terms of the agreement. The reason for this is, it is virtually impossible for an internet dealer to sell you a product without advertising the price SOMEWHERE. In other words, just because it is on our website with the price we are selling it for, we are in violation if the price according to them is TOO LOW. Storefront owners can get away with it by not advertising a price and the customer finds out when they take it to the checkout counter.

This is, in my humble opinion, bad business. It is bad for the consumer because they either are forced to pay more than a retailer really wants to charge OR they have to make a buying decision without knowing what the real price is.

It is bad for the dealers and distributors because they have to make the choice to either conform to the policy or decide not to carry the products their customers desire.

It is bad for the manufacturer because it really speaks volumes about their business practices and will eventually lose the revenue from those who won't tolerate their attempts at illegal price fixing. Again, that is opinion.

Direct price fixing is illegal in the USA. Minimun advertised price policies, I believe, results in effectively the same thing; manufacturer regulated prices in the marketplace. Especially online, where the only communication with a customer is via the web "advertisements".

This practice violates the very principles on which we founded our business. By not providing all the information for an informed buying decision, we are shortchanging our customers. Either that or we are charging more than we want to in an economy where every dollar makes a difference.

This is actually the second line of products we have dropped for the exact same reason. The other is the Namiki line of products by Pilot Pen Corporation. We did very well with that line as well and it was a sad day for our customers when we could no longer provide what they wanted.

To cover up the bottom line directive and trying to be positive, they say "we are trying to preserve the integrity of the Namiki line". What they are really saying is that they want us to charge customers more for no good reason. Period. Make no mistake...they are not charging US more, they just want us to charge YOU more!

We at Office1000 will continue to try and offer our customers the best prices on the best products on the market. That includes giving our customers the advantage of having the information presented to them fairly and accurately so they can make informed buying decisions.

We would say to our customers...thank you for your support and continued business through the tough economic situation our country is in. We will not be strong armed by manufacturers who seek to cloud the information we present to you with confusing price schemes that benefit no one. We suggest you do not do business with companies who engage in minimum advertised price schemes, as it doesn't benefit you in the least to do so.

There are usually similar products out there that will fit your needs.

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