Can manufacturers dictate the selling price?

Supersonos

I thought it was illegal for a manufacturer/supplier to dictate what price a product is sold to a consumer.  But I also remember some battle with Tesco and Levi many years ago and I think Levi won saying that having their jeans sold in Tesco for a lower price would cheapen their brand.

So what's the law?  Can Apple, for example, say to John Lewis, Currys et al "You can sell our products if you sell them for these prices"?  And if John Lewis decide to sell them at a discount, can Apple refuse to supply them?

It feels to me like the retailer should be able to sell for whatever they choose, as that's competition?  Or is the competition element between Apple and Microsoft?

k3lvc

Legally no but as you've noticed there are some brands that seem to be above the law and no retailer wants to challenge them - Apple in particular seem to be a master at this and have got away with it over many years.

It seems retailers would rather have a share of some profit/lack of competitiveness vs the alternative of Apple only selling direct from their own stores.

Retail pricing is one of my areas of work and I'd love to see the commercial agreements between Apple/John Lewis for example - can't see it happening any time soon though 

zzyzx1221

Google "resale price management"

Nearlyold

Resale price maintenance: advice for retailers - GOV.UK (www.gov.uk)

JJ_Egan

Was not the Levi case one of selling grey imports ?

Supersonos

k3lvc said:

Legally no but as you've noticed there are some brands that seem to be above the law and no retailer wants to challenge them - Apple in particular seem to be a master at this and have got away with it over many years.

It seems retailers would rather have a share of some profit/lack of competitiveness vs the alternative of Apple only selling direct from their own stores.

Retail pricing is one of my areas of work and I'd love to see the commercial agreements between Apple/John Lewis for example - can't see it happening any time soon though 

Interesting.  A friend of mine was telling me that he sells scented candles in his shop that only cost him £6 but he HAS to sell them for...  wait for this... £39.  No more, no less,  as dictated by the supplier.  I thought this was not allowed and it seems that's the case.

Supersonos

k3lvc said:

Legally no but as you've noticed there are some brands that seem to be above the law and no retailer wants to challenge them - Apple in particular seem to be a master at this and have got away with it over many years.

It seems retailers would rather have a share of some profit/lack of competitiveness vs the alternative of Apple only selling direct from their own stores.

Retail pricing is one of my areas of work and I'd love to see the commercial agreements between Apple/John Lewis for example - can't see it happening any time soon though 

Interesting.  A friend of mine was telling me that he sells scented candles in his shop that only cost him £6 but he HAS to sell them for...  wait for this... £39.  No more, no less,  as dictated by the supplier.  I thought this was not allowed and it seems that's the case.

Supersonos

JJ_Egan said:

Was not the Levi case one of selling grey imports ?

You could be right.  I remember it was something to do with Levi refusing to supply Tesco so Tesco sourcing elsewhere and selling for less.

lemondrops69

Supersonos said:

I thought it was illegal for a manufacturer/supplier to dictate what price a product is sold to a consumer.  But I also remember some battle with Tesco and Levi many years ago and I think Levi won saying that having their jeans sold in Tesco for a lower price would cheapen their brand.

So what's the law?  Can Apple, for example, say to John Lewis, Currys et al "You can sell our products if you sell them for these prices"?  And if John Lewis decide to sell them at a discount, can Apple refuse to supply them?

It feels to me like the retailer should be able to sell for whatever they choose, as that's competition?  Or is the competition element between Apple and Microsoft?

You've asked this before https://forums.moneysavingexpert.com/discussion/6156081/product-same-price-everywhere-is-that-allowed/p1 

Still cant get a cheap Apple product?

Personally I think Apple products are overpriced and not that good.

MobileSaver

Supersonos said:

Can Apple, for example, say to John Lewis, Currys et al "You can sell our products if you sell them for these prices"?  And if John Lewis decide to sell them at a discount, can Apple refuse to supply them?

My understanding from my days in retail is that Apple control prices quite legally by only offering minuscule trade discounts so no-one can afford to discount their products to any significant degree...