Fender Guitars Fined in UK

The biggest problem with these mega stores like GC & MF & their buying power is they absolutely kill the quality control over at say Gibson & Fender etc.. (especially Gibson) they can’t keep up with the demand of 235 Guitar Center storefronts needing 20 Les Paul STD in their immediate inventory & on their floor. They really have done damage to the instruments themselves.
 
If the OP truly does not want to do business with companies who are found guilty of wrong doing he should do his homework. Many companies get slapped for their discretions. Fender is not alone.

Where does that hole end? He could easily find himself not using many of the biggest, most desirable brands due to a self imposed “conscience boycott”.
 
If you read my further comments, I explain that I overreacted.

Now that I think of it, Apple does the same thing. How is this different? How does Apple get away with it?
 
LeftyStrat said:
If you read my further comments, I explain that I overreacted.

Now that I think of it, Apple does the same thing. How is this different? How does Apple get away with it?
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This is what I am seeing:
LeftyStrat said:
https://www.theguardian.com/busines...maker-fender-fined-45m-for-price-fixing-in-uk
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LeftyStrat said:
I suppose I hadn't considered this.
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I don’t see where you said you overreacted.

EDIT: I see. You edited your original post 5 minutes after I posted my initial response.

Apple does it. I think Gibson did it. Big companies commonly take “liberal interpretations” of laws and trade practices. If/when they get caught, they argue their case and throw money and influence around. Sometimes they win. Sometimes they lose.
 
Actually I did the edit and forgot to submit. I know a lot of corporations use the philosophy of "maximizing shareholder value," but look how the cost cutting culture of Boeing pretty much destroyed shareholder value. I do believe Fender management believes in preserving the legacy of the brand. I bought my son his first bass recently. It was a package deal with an amp and a subscription to Fender play. I'm pretty sure it's sold pretty close to cost. Which is really brilliant. If my son continues to develop as a bass player, he'll likely become a lifetime customer.
 
Admin M@ said:
I for one am a Fender die-hard fan and will continue to play, own, buy and love their guitars, and recommend them to others.
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I love their guitars too but I am a bit biased because a bunch of mine are masterbuilt by a close friend of mine who used to work there and you bet your butt I didn't pay full price MAP or otherwise. :)
 
moo cow said:
This seems so counter intuitive. I own a small retail bike shop and we are a dying breed. Exactly what Chris said above. We can't compete with the buying power of the huge chains and they can crush the small guy by volume buying and volume discounting. The fact that the article says it's illegal to set and enforce a MAP pricing is crazy. It's a race to bottom if you don't.
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What does everyone think happens to the prices once all the competition is gone? It's literally a game of attrition. Sell aggressively on a tight margin say 10% or less for 2 years and you can be the last man standing. The market share is now yours, then you can dictate price!
Health Care? Will we be purchasing our guitars from a Gov't run music store?
 
skunc said:
What does everyone think happens to the prices once all the competition is gone? It's literally a game of attrition. Sell aggressively on a tight margin say 10% or less for 2 years and you can be the last man standing. The market share is now yours, then you can dictate price!
Health Care? Will we be purchasing our guitars from a Gov't run music store?
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That’s basically what Amazon did. They would sometime sell below cost. I used to work for them.
 
In the US, small dealers want MAP to protect their slim margins, thinking they can add value with better local service and support. I don’t know if U.K. has bigger chains so maybe the stores want the freedom to discount even though they don’t seem to do so.

BTW, regardless of MAP, stores can still sell below MAP. I am surprised how many people don’t negotiate.
 
rickboot said:
In the US, small dealers want MAP to protect their slim margins, thinking they can add value with better local service and support. I don’t know if U.K. has bigger chains so maybe the stores want the freedom to discount even though they don’t seem to do so.

BTW, regardless of MAP, stores can still sell below MAP. I am surprised how many people don’t negotiate.
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MAP refers to the advertised price, not the purchase price.
 
skunc said:
What does everyone think happens to the prices once all the competition is gone? It's literally a game of attrition. Sell aggressively on a tight margin say 10% or less for 2 years and you can be the last man standing. The market share is now yours, then you can dictate price!
Health Care? Will we be purchasing our guitars from a Gov't run music store?
Click to expand...

Yep. This is the Walmart model.
 
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