AS1689 Price fixing Rip-off « Rapid Bikes Forums

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Oops, gone a lot off topic this one; but seeing as we are now discussing general consumer goods, then here goes:

...as far as I can tell from looking at prices around the World on Ohlin's (excl. USA) - cause this is something I have to deal with like non-stop - the price we have is actually fair. Well, OK we are 100 or sometimes 50 dollars more expensive (shipping/distance?) - this is after looking at the SEK (Sweden) and the Euro in both France & Germany, then checking the GBP prices - but it is true that the US is still cheaper... so I had a chance to make some enquiries about that. They buy in their own currency @ 35% less than the global price. Hmm, sounds a bit familiar, as I recall Triumph's being cheaper there than in the UK when I lived there too...

...but how is this working? Well, I asked a good friend of mine whom seems to understand things a little more than I. It would appear that all companies want to be into the US market, both competition and sales are high (population). But profit is not so important, it being more about brand awareness and profile or something. The profit has to come from the rest of the World, the US of Eh is just about exposure really. So it could be taken from this that the price they have is not a very realistic price, certainly not a tenable notion for every company to always sell at those prices everywhere else on the planet and still have it worthwhile producing their goods anyway.

The bit I really do not get is why they get low prices anyway? Like they want the stuff just like we do and would still pay it if it were higher - but I suppose that is why I am not an economist hey! The only piece to glean from it is that perhaps if they do not sell at those prices then they run the risk of some American venture capitalist coming up with a knock-off product and selling it as home-grown? So perhaps in this sense the goods being priced low means there is no profit there for the home-grown knock-off producing venture capitalist or something?

Like I said, I don't really know, but it is intriguing and I wonder where this will all go in the future and how the global market-scape will be altered…?

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AS1689 Price fixing Rip-off

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