Mahoney wrote:Arrg. There is nothing wrong with selling below the rrp. There is something wrong with selling cheap rip offs of someone elses product.
True and true! It's not at all illegal to go below RRP unless it is agreed in the stockist's agreement and then it's a matter for civil court where the judge rule's on what's what. Really, I suppose it's the way Penguin did it, the consequences of the unexpected price drop on other retail stockists and the implicit message that Sankey was somehow at fault in their statements, that got people's backs up.
Imagine if a McDonald's franchise (yup, they're all franchises) started selling burgers for 75% of the official price. Good for the customer, potentially very bad for the other franchises in the area whose businesses might not be able to afford to do the same. They might be new startups who have yet to see a profit and can't afford a loss. I suppose it comes down to a sense of fair play in the end. Where there's an RRP, the idea is that you make your bread on the margin between wholesale and retail.
Actually, you know, I'm quite sure cheap rip-offs are a criminal offence. If, say, we were to start making and selling our own Levi 501s, we'd be in line for a raid from Trading Standards. A proper, taken away in handcuffs raid. Depending on the size of the operation, time inside could be on the cards.
Interesting thought: if someone reverse engineers the principle underlying a trick to create a new one using the same principle, is it a rip-off or an original work?