Accuquilt GoNO MORE SALES ANYWHERE!
05-14-2014, 11:26 AM
#31
Senior Member
Join Date: Jul 2012
Location: Kaua`i
Posts: 617
I don't own one of these, and this is just one more reason why I won't buy the product in the future. I'm surprised that they've decided to go in that direction, because the legality of minimum resale price agreements varies from state to state and can always be challenged.
Thank goodness I enjoy the cutting out process.
05-14-2014, 11:29 AM
#32
Senior Member
Join Date: Jul 2012
Location: Kaua`i
Posts: 617
This is not price fixing. One must consider the two roles being played - the role of the manufacturer and the role of the retailer. The manufacturer wants the consumer to buy their product. (Coke wants you to buy Coke not Pepsi) They don't care where they buy it but rather they buy their product. The retailer wants the consumer to shop at their store. (Walmart wants you shop there and not at Target) They don't care what you buy there (Coke or Pepsi) but that you come to their store over some other store. This often puts these two parties - the manufacturer and the retailer - at odds when it comes to pricing because pricing is often used to entice consumers to buy a particular product or shop at a certain store.
Pricing is also used to position a product as prestige, economical etc. Pricing is part of the whole package is setting how the consumer perceives the product. When a retailer sets too low of a price, either by the pricing or coupon discount, sale etc, of a product that the manufacturer wants to present as high end it can also cause problems.
In a 1911 US Supreme court ruling (Dr. Miles Medical Company) mandatory minimum resale price agreements between a manufacturer and retailers were per se illegal. This interpretation of the law held until about 6 years ago when this issue was again brought up before the US Supreme Court (Leegin Creative Leather Products Inc. v. Kay’s Kloset). In this case the Court agreed with the argument that economic environment had changed since 1911 and that now manufacturers could set minimum price agreements but the "law of reason" would apply. The "law of reason" meant that manufacturers must consider all the circumstances surrounding the agreement to assure that it does not restrict competition or facilitate other pricing which is considered illegal.
So, in a nutshell, it is not price fixing and it is not illegal. Probably more information that you expected. Sorry, got carried away. Used to be a professor in business at a university. At least you got the short lecture!
Pricing is also used to position a product as prestige, economical etc. Pricing is part of the whole package is setting how the consumer perceives the product. When a retailer sets too low of a price, either by the pricing or coupon discount, sale etc, of a product that the manufacturer wants to present as high end it can also cause problems.
In a 1911 US Supreme court ruling (Dr. Miles Medical Company) mandatory minimum resale price agreements between a manufacturer and retailers were per se illegal. This interpretation of the law held until about 6 years ago when this issue was again brought up before the US Supreme Court (Leegin Creative Leather Products Inc. v. Kay’s Kloset). In this case the Court agreed with the argument that economic environment had changed since 1911 and that now manufacturers could set minimum price agreements but the "law of reason" would apply. The "law of reason" meant that manufacturers must consider all the circumstances surrounding the agreement to assure that it does not restrict competition or facilitate other pricing which is considered illegal.
So, in a nutshell, it is not price fixing and it is not illegal. Probably more information that you expected. Sorry, got carried away. Used to be a professor in business at a university. At least you got the short lecture!
05-14-2014, 11:31 AM
#33
Super Member
Join Date: Apr 2007
Location: North-Central Indiana
Posts: 4,909
Even if it's old news to you, it may not be to everyone else. I don't go looking all over just on the off chance there's some kind of MAP or pricing news. My sister didn't know about it either. And even if it's old news, it's just going into effect so some may not have remembered about it from last year. I'm glad the OP posted it.
05-14-2014, 11:51 AM
#34
Power Poster
Join Date: May 2008
Location: MN
Posts: 25,193
If I understand this thing correctly.
No seller may sell this for less than X.
However, any seller may sell this product for X or X+ whatever the traffic will bear???
No seller may sell this for less than X.
However, any seller may sell this product for X or X+ whatever the traffic will bear???
Last edited by bearisgray; 05-14-2014 at 11:57 AM.
05-14-2014, 11:58 AM
#35
Super Member
Join Date: Jun 2012
Location: Sonoma County, CA
Posts: 4,299
I think you've got it right, bearisgray.
One thing to keep in mind is that we don't know what the required minimum price is. The minimum may still be as low as or lower than the sale prices you're used to paying. If Joann's, (just for example) is already marking them up 50% over minimum, they can still put them on sale for 30% off retail price because it'll still be above the manufacturer's required minimum. (I have no idea if those numbers are correct or reasonable, just throwing them out there as illustration.)
So don't panic yet, this might not affect you Go! owners as much as you fear.
One thing to keep in mind is that we don't know what the required minimum price is. The minimum may still be as low as or lower than the sale prices you're used to paying. If Joann's, (just for example) is already marking them up 50% over minimum, they can still put them on sale for 30% off retail price because it'll still be above the manufacturer's required minimum. (I have no idea if those numbers are correct or reasonable, just throwing them out there as illustration.)
So don't panic yet, this might not affect you Go! owners as much as you fear.
05-14-2014, 04:34 PM
#37
Senior Member
Join Date: Dec 2011
Location: Illinois
Posts: 502
Reducing the price on the cutters does not benefit existing customers. It only helps to entice new customers. Also, I have purchased many of the 29.99 or less dies, on sale, cheaper then the accuquilt new price. I am anxious to see what the monthly promotions are. Hopefully, they will be equivalent to the sales, including shipping, I've found this past year. I love this product, but am disappointed in this new policy.
05-15-2014, 02:21 AM
#39
Senior Member
Join Date: Mar 2010
Location: Orange Park,Fl
Posts: 925
I too have received 4 messages from all that I deal with. All I can say is this S--Ks. We who own the Go always look at the Dies. Myself e over 40 of them and never paid full price. Now they are coming out with 10 new ones. I will not be buying anymore dies.
05-15-2014, 02:31 AM
#40
Super Member
Join Date: Oct 2010
Location: Florida
Posts: 1,135
Hello Fellow Quilters!
I just wanted to address some of the misinformation and give you the facts about AccuQuilt’s new pricing policy.
In our ongoing effort to deliver both quality and value to our customers, we have recently done the following:
· Lowered the everyday retail price on our GO! and GO! Baby Fabric Cutters
· Lowered the price on 25 GO! Dies, so now there are more than 50 dies $29.99 or less that also include a free pattern
· Created new exciting promotions that will be offered each month to give additional value and savings to all of our customers, regardless of where they choose to shop
Along with the actions listed above, AccuQuilt and its dealers will also continue to offer value to GO! customers with free patterns, education and outstanding customer service.
Thanks again for all your input and support. It is greatly appreciated.
Steve Nabity
AccuQuilt CEO
I just wanted to address some of the misinformation and give you the facts about AccuQuilt’s new pricing policy.
In our ongoing effort to deliver both quality and value to our customers, we have recently done the following:
· Lowered the everyday retail price on our GO! and GO! Baby Fabric Cutters
· Lowered the price on 25 GO! Dies, so now there are more than 50 dies $29.99 or less that also include a free pattern
· Created new exciting promotions that will be offered each month to give additional value and savings to all of our customers, regardless of where they choose to shop
Along with the actions listed above, AccuQuilt and its dealers will also continue to offer value to GO! customers with free patterns, education and outstanding customer service.
Thanks again for all your input and support. It is greatly appreciated.
Steve Nabity
AccuQuilt CEO
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