Originally Posted by citruscountyquilter (Post 6715100)

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!
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Originally Posted by homebody323 (Post 6716857)

Citruscountyquilter, would have sworn you were a lawyer when reading your post - thanks for the up date. Always thought they were fair trade items and I would see sales at xmas time. I had a studio and got rid of it. Too bulky and too heavy. I now have a go baby and for the little I use it, things are just fine. I think the dies are too pricey and have only a few. I do believe they would be better off to allow sales since as a retailer (use to own a quilt shop). I believe that if I purchase a product for $20 and can sell it for 100% markup at $40 then fine. If that 100% markup keeps people from buying it, I'm putting it on sale at perhaps $30. Now I'm making a 50% markup. It costs a certain amount to keep my store open, utilities, rent, payroll. If a 100% markup is needed to keep my store open and a product doesn't sell because the consumer thinks the product isn't worth it. It is not making me money - it's taking up valuable inventory money and space. Next time I buy inventory I will replace them with something that will fly off the shelves at an acceptable price. These dies are the candy at the grocery store. Luxury items. I can live without them but I want them. How much is my decision. How much the stores are making to justify space and time is up to them. We all have wants and needs. The american way - supply and demand - works out in the end. Perhaps another product will come along that is better, cheaper and willing to compete. I don't have enough money or space tied up in my go baby to keep me from buying another brand in addition if such a product comes along.

Originally Posted by Onebyone (Post 6715220)

I guess I think differently. I don't feel guilty buying a die that I may use one time or fifty. The dies aren't that expensive even at regular price for the value.

Originally Posted by Marsh (Post 6714958)

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.