SX Mini ??

[LandyMan]

Price fixing is completely illegal. They can have RRP that's all.

Sent from my SM-N910H using Tapatalk

But this isn't price fixing. Price fixing is when two, let's say bread companies, get together and decide they will both sell for the same price and not undercut the other. You can't price fix if you are the only company producing the product. MSRP as mentioned previously.

Then again, this is not SA people, who knows what they are/aren't allowed to do there. I am willing to bet going to them with "Price fixing allegations" they will laugh at you all the way down the stretch where the firing squad is already lined up

 

[Andre]

But this isn't price fixing. Price fixing is when two, let's say bread companies, get together and decide they will both sell for the same price and not undercut the other. You can't price fix if you are the only company producing the product. MSRP as mentioned previously.

Then again, this is not SA people, who knows what they are/aren't allowed to do there. I am willing to bet going to them with "Price fixing allegations" they will laugh at you all the way down the stretch where the firing squad is already lined up

Section 5 of the Competition Act 89 of 1998:

5. Restrictive vertical practices prohibited

(1) An agreement between parties in a vertical relationship is prohibited if it has the effect of substantially preventing or lessening competition in a market, unless a party to the agreement can prove that any technological, efficiency or other pro-competitive, gain resulting from that agreement outweighs that effect.

(2) The practice of minimum resale price maintenance is prohibited.

(3) Despite subsection (2), a supplier or producer may recommend a minimum resale price to the reseller of a good or service provided-

(a) the supplier or producer makes it clear to the reseller that the recommendation is not binding; and

(b) if the product has its price stated on it, the words “recommended price” appear next to the stated price.

 

[SamuraiTheVapor]

@Andre congratulations for being smoke free for 2 years! That's a huge achievement

 

[Andre]

@Andre congratulations for being smoke free for 2 years! That's a huge achievement

Thanks, I am dead chuffed.

 

[LandyMan]

Section 5 of the Competition Act 89 of 1998:

5. Restrictive vertical practices prohibited

(1) An agreement between parties in a vertical relationship is prohibited if it has the effect of substantially preventing or lessening competition in a market, unless a party to the agreement can prove that any technological, efficiency or other pro-competitive, gain resulting from that agreement outweighs that effect.

(2) The practice of minimum resale price maintenance is prohibited.

(3) Despite subsection (2), a supplier or producer may recommend a minimum resale price to the reseller of a good or service provided-

(a) the supplier or producer makes it clear to the reseller that the recommendation is not binding; and

(b) if the product has its price stated on it, the words “recommended price” appear next to the stated price.

@Andre this is the SA law, no?

 

[Andre]

@Andre this is the SA law, no?

Yes, it is.

 

[LandyMan]

Yes, it is.

Thanks @Andre , so I am guessing this is the subsection we are on about: (2) The practice of minimum resale price maintenance is prohibited.
And then there's some more blah blah blah
My point is, what are they going to do to a non-SA supplier. Supplier says: Sell for $200, I say ok, and sell for $150. They say get stuffed, we won't supply anymore.

So now what? The supplier won't supply me anymore, and I do what, go to the competition commission? Surely they will also tell me to get stuffed as it is a non-SA supplier?

Asking the questions as it might be illegal in SA, but what about cross border transactions etc?

 

[Andre]

Thanks @Andre , so I am guessing this is the subsection we are on about: (2) The practice of minimum resale price maintenance is prohibited.
And then there's some more blah blah blah
My point is, what are they going to do to a non-SA supplier. Supplier says: Sell for $200, I say ok, and sell for $150. They say get stuffed, we won't supply anymore.

So now what? The supplier won't supply me anymore, and I do what, go to the competition commission? Surely they will also tell me to get stuffed as it is a non-SA supplier?

Asking the questions as it might be illegal in SA, but what about cross border transactions etc?

This is illegal in most countries, including China. So, in theory - we all know about laws being applied in practice, both parties can be brought to book.

 

[LandyMan]

This is illegal in most countries, including China. So, in theory - we all know about laws being applied in practice, both parties can be brought to book.

Interesting ... thanks @Andre

 

[shabbar]

 

[baksteen8168]

View attachment 31541

See, it is no longer in stock due to them selling it below the stated price.

 

[JakesSA]

Whatever the law says is largely irrelevant because in the really real world nobody can legally force a supplier to do business with anyone should they choose not to. YiHi, Cloudmaker Technologies etc will just stop supplying the offending retailer. This is common practise in South Africa as well in the appliance , entertainment and several other markets, you just wont see it stated explicitly in pricing agreements. It's especially prevalent where monopolised supply chains are at play.

Another common practise is to understate the value of items which are out of stock ...

 

[Andre]

Whatever the law says is largely irrelevant because in the really real world nobody can legally force a supplier to do business with anyone should they choose not to. YiHi, Cloudmaker Technologies etc will just stop supplying the offending retailer. This is common practise in South Africa as well in the appliance , entertainment and several other markets, you just wont see it stated explicitly in pricing agreements. It's especially prevalent where monopolised supply chains are at play.

Another common practise is to understate the value of items which are out of stock ...

No doubt about that, @JakesSA - why I said "in theory".

 

[JakesSA]

I saw, was just ranting because South African law is getting more and more of this nanny state nonsense. Good intentions, sure, but ultimately not worth the paper its written on.

In truth, the Chinese are busy setting up massive distribution chains in the States, like 'Asmodus' (ring a bell?) for example. This removes the onus of having to import and the risk of holding high stock levels from the Yankees and from there comes the price wars where making 2.5% margin is acceptable. Keep in mind that internet commerce is a mature market there with online probably outnumbering the so called "brick and mortar" 9 to 1 or more. The concept of "but I have shop and overheads and this entitles me to higher profits" is neither accepted nor acceptable. They are already adapting a business model of micro shops where items can be seen and felt but you must still order from the website.

It leaves most other countries out in the cold and for countries like South Africa where the shipping costs (import and local) are exorbitant and the market small to start of with, it becomes very difficult to offer pricing that's competitive. On the positive side for consumers globalisation does prevent mass scale profiteering and is certainly not a bad thing for those consumers willing to forgo warranty etc. and buy directly from overseas retailers. Coupled with a market where the product evolves constantly, it does make keeping a constant and reliable supply of stock very difficult for a small local retailer. A retailer can of course offset the risk by increasing the price but generally nobody wants to pay a 20%+ premium on an already expensive items vs. a direct import just to maintain a possible warranty claim.

But hey, we do what we can.

EDIT: In case it's not clear it irks the hell out of me that the good South African citizen has to pay more for an item than our 'first world' counterparts but ... that's rage against the machine.

 

[JakesSA]

Please note that we have the SX Mini on a pre-order at the moment, to be finalised tomorrow.

 

[KieranD]

Vape Cartel has a shipment of SX Mini on route!
I will open the preorders on these later today guys Should have them in your hands before the weekend