Fender illegally restricted discounts, says CMA

Discussion in 'Guitars in General' started by Algebraist, Oct 8, 2019.

  1. Algebraist

    Algebraist Member

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    The UK’s competition watchdog has accused the US guitar maker Fender of fixing prices illegally by restricting online discounts on its guitars.

    From 2013 to 2018, Fender Musical Instruments Europe impeded competitive online pricing by imposing a minimum sale price on vendors, the Competition and Markets Authority (CMA) said in a provisional ruling. The practice, known as resale price maintenance, is illegal and makes it difficult for customers to find good deals.

    https://www.theguardian.com/busines...firm-fender-discounts-cma-uk-sale-price-deals
     
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  2. halcyon

    halcyon Member

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  3. Jabby92

    Jabby92 Member

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    Doesn't surprise me. I've seen newer used Fenders more expensive than brand new ones as well. Ever since the Professional line and other models have launched I never see 'deals' on these newer Fender guitars. Thats why I think its crazy how expensive the Vintera line is.. $1000 for a MIM is insane as well.. unaccpetable IMO.
     
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  4. A. Deafman

    A. Deafman Member

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    Corporate greed (and hubris) is nothing new to the guitar industry. From what I've seen in a few pro- and anti-Gibson threads, though, it seems wise to keep in mind that this attitude doesn't necessarily extend to the many people who actually make the guitars. Shareholders and execs gotsta be paid.
     
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  5. carrier street

    carrier street Supporting Member

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    That's legal in the US apparently. If you think music companies are bad, golf equipment manufacturers are CRAZY. Like, secret shoppers trying to get retailers to throw in a hat with a $400 driver and suspending their account if they do.

    They do this to protect the profitability of their largest customers. It's easier to sell Musicians Friend / Guitar Center a bajillion Strats if they can guarantee a profit margin on them by keeping other retailers from undercutting them.
     
  6. Jabby92

    Jabby92 Member

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    For sure. When I bought my American Pro from Long & McQuade it was during a promotion period where it was 0% financing for 6 months. Pretty much a joke, its nice not having to pay interest but really it could have been better like some type of coupon or other incentive. Wishful thinking I guess.

    [​IMG]
     
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  7. A. Deafman

    A. Deafman Member

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    Hah, Long and McQuade is another sore point with me, but that's a thread for another time.

    The American Pro models I've played seem good. For a while I played a 2018 Tele from the line and I was surprised how well it resonated, acoustically at least. Pickups were really good. Nice guitar.
     
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  8. Jabby92

    Jabby92 Member

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    Yeah, I bought the FSR Strat model. I think only 50-100 of them were made for Canada. Really great guitar, super light weight. My only gripe with it is the tuners are junk, I hope to replace them.
     
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  9. A. Deafman

    A. Deafman Member

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    Light weight is good, especially for weak older guys like me! I always wonder why they use those Ping tuners on a lot of Americans. I'd prefer something like vintage nickel Kluson style, and the higher end MIMs even have those. Strange.
     
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  10. Bossanova

    Bossanova Silver Supporting Member

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    It will become harder and harder for guitar values not to nosedive. Not surprised that this is common practice here in the US. Slightly surprised it is illegal in Europe.
     
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  11. Winterwind

    Winterwind Member

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    Heh. I'll be watching for that thread. I've got a love/hate going with them.
     
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  12. Tone_Terrific

    Tone_Terrific Supporting Member

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    It leaves a big price/marketing hole for Asian brands to fill..and they will.
     
  13. Bossanova

    Bossanova Silver Supporting Member

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    Squier fills it. I can buy a tele costing $139 new at GC, all the way up to $4,840. And, everywhere in between, all made by Fender Corp, Inc., Etc.
     
  14. Tone_Terrific

    Tone_Terrific Supporting Member

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    When the Chinese get their act together and start doing built to order custom shop quality stuff at 1/3 the price, and it looks like they will, we shall see where pricing goes, along with other aspects of N. American manufacturing.
    A lot of factors play into price.
     
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  15. slide13

    slide13 Supporting Member

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    Fender restricts the advertised price but that doesn't really impact the actual selling price, discounts on Fender are easy to come by and should be factored in when shopping. I think the worst I've done on a new Fender product recently has been 15% off, best I've done has been about 18% off, and I know of at least 2 places where I can get Custom Shop for 20% off no problem, one of which actually has the prices listed at 20% in the store so no haggling necessary. It's really only online price listings that seem to be restricted by this policy. I don't really have much problem with that. Not surprised it's illegal in the UK though, they have very strong consumer protections there.
     
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  16. flatiron.putt.putt

    flatiron.putt.putt Member

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    Long and Mcquade is awful, and they'll never get my business again (especially in this age of internet shopping and free delivery).
     
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  17. big mike

    big mike Plexi Loving Admin Staff Member

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    So they set a MAP and someone is ticked off?

    Sorry, can't seem to get bothered about that.
     
  18. A. Deafman

    A. Deafman Member

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    Heh. Don't want to get too OT, but my feelings are in the same ballpark. I get the impression they take their brick and mortar "advantage" over the internet for granted, based on a lot of the service I receive there. Which is both myopic and risky.
     
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  19. babbyb

    babbyb Member

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    I appreciate that the UK government are looking out for consumers, but I'm not sure confusing MAP with actual price fixing is much help. Eliminating MAP disadvantages low volume dealers versus the GCs and Sweetwaters of the world.
     
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  20. sundog964

    sundog964 Supporting Member

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    I got my MIM Strat this year by calling Sweetwater and asking if they could part with it for a certain dollar amount. He said sure can, and it sits in my house today. If you can't be bothered to look for a deal, i.e. call somebody, then you are going to get the MAP.
     

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