Question about price fixing (illegal?) - GoFuckYourself.com - Adult Webmaster Forum

X

Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#1

Question about price fixing (illegal?)

07-25-2004, 11:09 PM

Yea I KNOW, talk to a lawyer, but its 3am, and im not calling any til tomorrow but until then maybe i can find the law myself... or someone here knows.. (US law)

If I sell software, or any item for that matter, and I offer rights to resell it - is it illegal to require the item to be sold no less than a set minimum sales price?

Im guessing - no, it is not.

I cant see why it would be illegal to protect the item from getting 'cheapened' where resellers would sell it wayyy below what it should be sold for, just to make more sales.

I have someone interested in being a reseller of mine but hes telling me Im not allowed to fix a minimum sales price. ...and Ive never heard of that before...

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Tags: None
detoxed

vip member

Join Date: Jan 2003

Posts: 17798
Share

Post
#2

07-25-2004, 11:10 PM

price fixing usually involves in industry as a whole. like the CD companies saying hey, lets not sell any CD's for less than $20, we wont have to compete with each other by lowering prices at all
Comment
Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#3

07-25-2004, 11:25 PM

well i dont consider myself a whole industry... this is php scripts im talking about... Im not selling 'master rights' that allow the persons to do what they wish and even sell their 'master rights' as well... im just allowing people to resell MY product with some controls in place... and so i and the resellers dont have to compete with eachother.

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Comment
BRISK

Too lazy to set a custom title

Join Date: Feb 2003

Posts: 12240
Share

Post
#4

07-25-2004, 11:28 PM

Why do you care how little he sells it for? As long you're getting your money from him, what does it matter?

I post on GFY so that when people ask me what I do,
I can tell them that I work with the mentally retarded.
Comment
beemk

CLICK HERE

Join Date: Jan 2002

Posts: 20829
Share

Post
#5

07-25-2004, 11:32 PM

Originally posted by BRISK
Why do you care how little he sells it for? As long you're getting your money from him, what does it matter?

yeah, charge him your base price. if he only sells it for a penny above your price hes the one getting fucked, not you.

I host with Vacares
Comment
BRISK

Too lazy to set a custom title

Join Date: Feb 2003

Posts: 12240
Share

Post
#6

07-25-2004, 11:35 PM

Originally posted by beemk
yeah, charge him your base price. if he only sells it for a penny above your price hes the one getting fucked, not you.

That's what I was thinking.

Example:

You sell your product for $10

Everyone re-sells it for $15, but this one guy re-sells it for $14

Either way, you still only get the same $10, so what difference does it make to you?

I post on GFY so that when people ask me what I do,
I can tell them that I work with the mentally retarded.
Comment
Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#7

07-25-2004, 11:39 PM

well i sell mine for $200 and have it so you cannot sell it lower than $150 PUBLICLY... i dont care if they undersell $150 if its a private offer, like in email or something.

@ brisk: if someone searches the net for the same script and find different sites selling it at different prices, they will go for the cheapest obviously, which doesnt help as opposed to if all the sites were selling not lower then $150... then more sellers have a chance of getting that sale.

anywayz, im just trying to make sure there isnt some law that says i cant have a minimum sales price. If such a law exists whoever made it possible is a fuckwad

Last edited by Triple 6; 07-25-2004, 11:40 PM.

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Comment
SmutGiant

Confirmed User

Join Date: Oct 2003

Posts: 4896
Share

Post
#8

07-25-2004, 11:40 PM

Originally posted by BRISK
That's what I was thinking.

Example:

You sell your product for $10

Everyone re-sells it for $15, but this one guy re-sells it for $14

Either way, you still only get the same $10, so what difference does it make to you?

It's about branding and adding more value to your product/brand.
Comment
pimplink

Confirmed User

Join Date: Jun 2001

Posts: 9535
Share

Post
#9

07-25-2004, 11:41 PM

Depends. If you own a regional market, you are in trouble.

Need Mainstream Content and SEO?
SEO * Website Copy * Blogs
Blogging - PR Work - Forum Marketing - Social Marketing - Link building - Articles
100% Guaranteed Content!
Comment
BRISK

Too lazy to set a custom title

Join Date: Feb 2003

Posts: 12240
Share

Post
#10

07-25-2004, 11:42 PM

Originally posted by Triple 6
well i sell mine for $200 and have it so you cannot sell it lower than $150 PUBLICLY... i dont care if they undersell $150 if its a private offer, like in email or something.

@ brisk: if someone searches the net for the same script and find different sites selling it at different prices, they will go for the cheapest obviously, which doesnt help as opposed to if all the sites were selling not lower then $150... then more sellers have a chance of getting that sale.

anywayz, im just trying to make sure there isnt some law that says i cant have a minimum sales price. If such a law exists whoever made it possible is a fuckwad

I think I understand. You sell it to the public yourself AND you sell it through re-sellers, but you don't want the re-sellers to sell it any cheaper than you are selling it to the public.

Am I right?

I post on GFY so that when people ask me what I do,
I can tell them that I work with the mentally retarded.
Comment
BRISK

Too lazy to set a custom title

Join Date: Feb 2003

Posts: 12240
Share

Post
#11

07-25-2004, 11:44 PM

Originally posted by SmutGiant
It's about branding and adding more value to your product/brand.

That is true in some cases, but I don't know if it applies in this scenario.

I post on GFY so that when people ask me what I do,
I can tell them that I work with the mentally retarded.
Comment
KRL

Entrepreneur

Join Date: Oct 2002

Posts: 31429
Share

Post
#12

07-25-2004, 11:46 PM

Price fixing is when management at different companies get together and agree to all keep the same prices on their merchandise being sold so that market forces lose the ability to set prices based on supply and demand.

You can see this when you have a big intersection with a gas station on every corner and their prices are all the same.

Or at retail when electronics stores will all have the same price on an item.

Most companies deny they do this, but if you've been in the corporate world you know it goes on.

If you would like to develop your domains, you can lease inexpensive foreign labor
from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION!
*** *** *** *** *** *** *** *** *** *** *** ***
Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains
Comment
Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#13

07-25-2004, 11:51 PM

Originally posted by KRL
Price fixing is when management at different companies get together and agree to all keep the same prices on their merchandise being sold so that market forces lose the ability to set prices based on supply and demand.

You can see this when you have a big intersection with a gas station on every corner and their prices are all the same.

Or at retail when electronics stores will all have the same price on an item.

Most companies deny they do this, but if you've been in the corporate world you know it goes on.

so if their is a law against this, lol, do you think it would apply to my scenario - even tho im only one company and i originally dev'd the product?

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Comment
BlueDesignStudios

Confirmed User

Join Date: Feb 2003

Posts: 9492
Share

Post
#14

07-25-2004, 11:54 PM

Originally posted by Triple 6
so if their is a law against this, lol, do you think it would apply to my scenario - even tho im only one company and i originally dev'd the product?

from your description, what you're doing is all legal.

Price fixing would require you to collude with your competitors or take actions that artificially keep prices high - but if you're selling the same product, yes you can have an agreeement not to sell it below a certain price, most wholesalers do this.. but really in the first place you should be selling it to them at that minimum price so then they'd never sell it below that price anyway

Blue Design Studios - Adult Design Specialists!
Email me for a free quote: [email protected]
Comment
Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#15

07-25-2004, 11:57 PM

Originally posted by BRISK
I think I understand. You sell it to the public yourself AND you sell it through re-sellers, but you don't want the re-sellers to sell it any cheaper than you are selling it to the public.

Am I right?

sorta, but the resellers keep 100% profit... they only pay me a one time fee to sell the product, and an upgrade fee any time i release new features (bug fixes are free)

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Comment
Triple 6

Confirmed User

Join Date: Feb 2002

Posts: 5394
Share

Post
#16

07-25-2004, 11:59 PM

Originally posted by BlueDesignStudios
from your description, what you're doing is all legal.

Price fixing would require you to collude with your competitors or take actions that artificially keep prices high - but if you're selling the same product, yes you can have an agreeement not to sell it below a certain price, most wholesalers do this.. but really in the first place you should be selling it to them at that minimum price so then they'd never sell it below that price anyway

yea well ive been short term minded with all this -otherwise i would have jus opened an affiliate program...

SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800.
Comment
Manowar

jellyfish

Join Date: Dec 2003

Posts: 71528
Share

Post
#17

07-26-2004, 12:02 AM

set a recommened retail price
Comment

Previous template Next

Working...