Is a Town Market with just one trader legal?

terra_ferma

I agree with the suggestion that you could develop more the pet grooming side, which is actually complementary to the pet supplies stall, and could benefit from the extra trade coming in on Fridays.
Can you compete on price (probably not as your overhead are much higher)?
Maybe you could stock different brands, more expensive to sell to grooming customers?

Mistral001

Funky_Bold_Ribena wrote: »

Go and talk to him and see if you can work together for the mutual benefit of your businesses; he could give out 20% vouchers for grooming and in return you give 20% off vouchers for his friday market; between you could could make your area the hub for the doggie and pet owners in that town.

That may sound a good idea but what you have described is strictly speaking colluding and illegal as far as I can see. Disregarding what the Office of Fair Tradingwould do if they were told of it, if customers came to know that the two firms had some sort of "working together for the mutual benefit" dialog they would not be too pleased.

terra_ferma

Mistral001 wrote: »

That may sound a good idea but what you have described is in effect colluding to fix prices and if came to the attention of the Office of Fair Trading they both could be prosecuted.

How can they be fixing prices when the stall market doesn't even offer grooming? Price fixing afaik is about both selling the same products at the same price, not about selling different products at different prices but giving a discount.
Obviously I may be wrong, and it would be useful though if you could give examples of any such prosecutions, involving very small traders and the practice of giving discounts.

terra_ferma

Mistral001 wrote: »

That may sound a good idea but what you have described is strictly speaking colluding and illegal as far as I can see. Disregarding what the Office of Fair Tradingwould do if they were told of it, if customers came to know that the two firms had some sort of "working together for the mutual benefit" dialog they would not be too pleased.

Even this 'edited' version seems a bit far fetched, why would customers mind if they are given discounts and save 20% on the full price for grooming or products?
And again, do the OFT have a track record of prosecuting such small businesses? Maybe they do, I don't know, and you can provide examples?

However this would work only if they sell different products, e.g. pet supplies are sideline to a main business offering grooming servicing, otherwise it would look a bit dodgy (I sell cat biscuits but go buy them more cheaply somewhere else...).

martindow

I think the OFT might be interested in businesses who collude to keep prices high or raise them when they effectively create a monopoly. I don't think they would have any interest in arrangements to lower prices or any dealings involving a single shop and a market stall.

Savvy_Sue

Mistral001 wrote: »

Savvy_Sue. I thought of that one when I first read the post, but when you think about it the best days to have promotions is on any day other than the Friday. Having it on a Friday means that the customer does not feel special. Most regular customers will will figure it out that it is only because of the guy across the road that there is a promotion and not speciffically to do with serving their needs or because there is an end of the line item or some other reason that all customers recognise and appreciate. The guy is only there one day. The OP needs to keep his regular customers happy for six days.

I know what you're saying, and I know Friday isn't a regular day for discounts - I'm used to Pensions Mondays and so on, BUT ...

ATM, if people are coming to the area on Fridays specifically for the chap in the market, surely the OP needs to give them a reason to come into their shop too? Since they offer some different services, once in, it shouldn't be hard to give them a reason to come back?

So, fair enough, maybe not a discount on Fridays, but maybe a voucher for a return visit?

Loyalty cards?

BTW, for the few places where I'm a regular customer, I don't usually think much about why there's a special offer for a particular day, I just aim to take advantage!!!

Mistral001

Savvy_Sue wrote: »

I know what you're saying, and I know Friday isn't a regular day for discounts - I'm used to Pensions Mondays and so on, BUT ...

What I meant was not on the same day of the market when the guy across the road is there.

You see it would actually be admitting that you are jumping to to competition's tune with regard to your prices. That will send out the wrong message in a big way. You have to believe in your product and tat it offers value for money to the customer and project that message to the public. The message that is being sent out to the public on market days by lowering prices just for that day is that the guy across the street is actually offering more value for money than me and that I have to lower my prices.

Like the loyalty card idea though. It plays on the fact that the public will see OP's shop is likely to be around a lot longer than the guy with the stall. Tht is an advantage that a stall could never have.

Mistral001

martindow wrote: »

I think the OFT might be interested in businesses who collude to keep prices high or raise them when they effectively create a monopoly. I don't think they would have any interest in arrangements to lower prices or any dealings involving a single shop and a market stall.

Just because the OFT might not think it worthwhile to prosecute does not necessarily make it legal. Once you start discussing prices and coming to agreements with competitor you could start a process that leads anywhere.

In this case, I believe the OP does not know the competitor personally and thus an approach will have to be made. It would be interesting to find out how that approach would be worded.

terra_ferma

Mistral001 wrote: »

Just because the OFT might not think it worthwhile to prosecute does not necessarily make it legal. Once you start discussing prices and coming to agreements with competitor you could start a process that leads anywhere.

In this case, I believe the OP does not know the competitor personally and thus an approach will have to be made. It would be interesting to find out how that approach would be worded.

Is this your opinion, or based on facts (i.e. what the law actually says, or real cases)? What law would they be breaking by offering a discount voucher, I'm genuinely interested to know as you obviously you know something that I don't.

motorguy

Savvy_Sue wrote: »

I'd make a special offer on Fridays for something not on offer from the stall, eg 5% discount for grooming, maybe more for pensioners or if you can spot any other group who use the market stall. Study his customers and see how you can benefit!!!

I like that!

OR work out what he sells most of, then offer 10% off on fridays of those products.