katkat1946

I don't have any idea how many of you use Accuquilt Go but I just received a message from one of the vendors I've used stating that after May 15 NO ONE will be allowed to sell at less than the recommended price set by the company. Sounds like no more sales anywhere to me unless Accuquilt gives permission for a special promotion at their discretion. I've pasted a portion of the email below:

We had been informed about a month ago that Accuquilt was going to announce a new pricing policy that would drastically restrict dealers from offering promotional prices on Accuquilt products. Yesterday we received notification that their new pricing policy will go into effect on May 15, 2014. Frankly this is the most restrictive pricing policy we have ever seen. This new pricing policy prohibits anyone from selling Accuquilt products for less than their suggested price.

Accuquilts policy states "In the event Accuquilt determines, in our reasonable discretion, that a reseller has advertised or offered or sold any of our products at a price below our minimum advertised price, we will terminate our existing relationship with that reseller, cancel all current orders from that reseller or instruct our distributor to indefinitely refuse to accept any additional orders for our products from that reseller."

Marsh

wow - thanks for this info. I can buy dies for a 30% discount - so better get to the store tomorrow to see what they have that I might need in the future.

dunster

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.

dunster

Price fixing is where more than one company engages in setting a market price. This is just one company setting the price for its own products.

quiltingcandy

There are a lot of products like that and I am fairly sure Accuquilt has always had that policy. If you look at the coupons from Joann's they will not apply to Accuquilt.

I usually buy only from Accuquilt on-line because they have good discounts, free shipping from time to time and don't charge our sales tax. They are making it competitive for all their retailers by having such a policy.

ManiacQuilter2

I agree. It is price fixing. I don't know HOW they will tell the larger chain stores what price to set on their products.

patricej

it is not price fixing.
it's odd and will be inconvenient to their customers, but it is not price fixing.

i wonder if they are hoping more people will shop directly from their website.
they always have something on sale.

perhaps if you write or call the company they will explain their reasons.

citruscountyquilter

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!

Onebyone

I usually order from the website. I get reward points, good sales, and excellent customer service. Watch the online shops that sell Accuquilt, some will stop selling the dies and will have them on clearance. They can sell at clearance prices if they aren't going to continue to sell.

katkat1946

Citrus County Quilter - thanks for taking the time to share all of those details. So it may not sound illegal but I'm thinking it's not a good business practice. There are probably a lot of people who think like I do and simply won't buy a die or as many now; I have seen some good 30, 40, 50% sales in stores and on-line. Unless I were really desperate, I wouldn't pay $40-70 and more for one die that will only occasionally be used. When Accuquilt runs a sale I've always been able to find what I want cheaper elsewhere. I'm glad I have purchased most of the basic ones I'd want already. I've seen some comments from people who were considering buying an AccuquiltGo and now most likely will not. Might be a positive for their competitors!