Garmin Price Fixing Post from other newsgroup

Subject: Garmin too big for their britches? (Fixed Pricing)
From: (TripodBill)
Date: 7/14/2004 12:09 AM Central Standard Time
Message-id:

Many readers appropriately picked up on one of the most important issues in my
earlier post: Minimum Retail Price Policy (i.e., controls). For those that are
still interested in the subject and are of the "pilot persuasion" here's an
update of what you can expect at the Oshkosh show this year. You may recall
from my previous post that I relayed information from a friend Garmin's new
price policy on the GPSMAP 296 at SunNFun. Well, if you are headed to EAA's
Oshkosh show this year, there is good and bad news. Good news: The older GPSMAP
196 will be cheaper this year at about $795. More Good news: There will be new
low-end handhelds in B&W and color to replace the aging GPS III Pilot and
GPSMAP 295. The new handhelds will both be in the GPSMAP 76 form factor. (Not
sure if that's a great design for yoke mounting, but I'll leave that to pilots
to decide.) Bad news? ALL MODELS will now be under the Minimum Retail Price
Policy, meaning no dealer at the show will be competing with another dealer.
Buy from whoever you like, 'cause they can't sell it to you any cheaper. Any
dealer that screws up and offers free shipping, a package deal, or discounted
accessory will be canceled by Garmin. Garmin has now fixed prices on all their
aviation products. It will be just a matter of time before they do the same in
the automotive, outdoor and marine product lines. Happy shopping!

-Bill

(for more info, see sci.geo.satellite-nav newsgroup)

(TripodBill) wrote in message ...
Subject: Garmin too big for their britches? (Fixed Pricing)
From: (TripodBill)
Date: 7/14/2004 12:09 AM Central Standard Time
Message-id:

Many readers appropriately picked up on one of the most important issues in my
earlier post: Minimum Retail Price Policy (i.e., controls). For those that are
[snip]
accessory will be canceled by Garmin. Garmin has now fixed prices on all their
aviation products. It will be just a matter of time before they do the same in
the automotive, outdoor and marine product lines. Happy shopping!

-Bill

(for more info, see sci.geo.satellite-nav newsgroup)

"He who builds a better mouse trap...." This is the basis of our free
enterprise system. If you don't like it then don't buy Garmin. Right
now they (Garmin) are enjoying the fruit of having the right products
at the right time and clearly there are many people willing (key word
here) to pay Garmin's price for them. I certainly don't like the
lack of competative choice for a GNS430 or GPSMap 296 but there is
nothing that you or I can do other than spend our money elsewhere.

I had hope when UPS Technologies released their GNX80 that it would spur
a round of competative price reductions in the Garmin line. However
Garmin quickly eliminated that threat and bought UPS Technologies.


GaryP

Didn't the CD manufacturers get into hot water for setting what
amounted to a Minimum Retail Price Policy? I seem to remember getting
a class action check for some pitiful amount of money as a result of
that. As I remember they were convicted of giving advertising money
to retailers that agreed to the fixed minimum price.

I don't understand why Garmin would want to do this though. Maybe
somebody more familiar with anti-trust issues can give the economic
reason for these types of arrangements. I'd think they would want the
money collected by the distributers to approach zero (from
competition), leaving the potential of higher wholesale prices for
them.


(GaryP) wrote in message . com...
(TripodBill) wrote in message ...
Subject: Garmin too big for their britches? (Fixed Pricing)
From: (TripodBill)
Date: 7/14/2004 12:09 AM Central Standard Time
Message-id:

Many readers appropriately picked up on one of the most important issues in my
earlier post: Minimum Retail Price Policy (i.e., controls). For those that are
[snip]
accessory will be canceled by Garmin. Garmin has now fixed prices on all their
aviation products. It will be just a matter of time before they do the same in
the automotive, outdoor and marine product lines. Happy shopping!

-Bill

(for more info, see sci.geo.satellite-nav newsgroup)

"He who builds a better mouse trap...." This is the basis of our free
enterprise system. If you don't like it then don't buy Garmin. Right
now they (Garmin) are enjoying the fruit of having the right products
at the right time and clearly there are many people willing (key word
here) to pay Garmin's price for them. I certainly don't like the
lack of competative choice for a GNS430 or GPSMap 296 but there is
nothing that you or I can do other than spend our money elsewhere.

I had hope when UPS Technologies released their GNX80 that it would spur
a round of competative price reductions in the Garmin line. However
Garmin quickly eliminated that threat and bought UPS Technologies.


GaryP

(Jay) wrote in message om...
Didn't the CD manufacturers get into hot water for setting what
amounted to a Minimum Retail Price Policy?

When an entire industry fixes prices that is illegal. But we are
talking about 1 manufacturer setting prices, their prices.
I am sorry but there is nothing wrong with that. Now if Garmin,
Bendix King, Lowrance and whomever all met in a smoke filled room
and set minimum prices for all GPS equipment that would be a different
story.

The notion of filing a class action law suit against Garmin for
establishing a minimum retail price on their products is silly.
No one forces a shop to sell Garmin. A shop chooses to do so willingly
and in order to become an authorized retailer agrees to Garmin's
retail policies. But it is still only Garmin setting prices on Garmin
products. Now Garmin can increase prices up until they exclude enough
of the market to cause a drop in overall sales and therefore loose
profits. Still their choice! Right now there are enough people
willing to buy Garmin products at Garmin's current retail prices to
keep there production line busy. Until another company comes along
with as good of a product or better to challenge Garmin it is not
going to change. Garmin is in the business to make money not friends.

Gary P

"GaryP" wrote in message
om...
(Jay) wrote in message
om...
Didn't the CD manufacturers get into hot water for setting what
amounted to a Minimum Retail Price Policy?

When an entire industry fixes prices that is illegal. But we are
talking about 1 manufacturer setting prices, their prices.
I am sorry but there is nothing wrong with that. Now if Garmin,
Bendix King, Lowrance and whomever all met in a smoke filled room
and set minimum prices for all GPS equipment that would be a different
story.

The notion of filing a class action law suit against Garmin for
establishing a minimum retail price on their products is silly.
No one forces a shop to sell Garmin. A shop chooses to do so willingly
and in order to become an authorized retailer agrees to Garmin's
retail policies. But it is still only Garmin setting prices on Garmin
products. Now Garmin can increase prices up until they exclude enough
of the market to cause a drop in overall sales and therefore loose
profits. Still their choice! Right now there are enough people
willing to buy Garmin products at Garmin's current retail prices to
keep there production line busy. Until another company comes along
with as good of a product or better to challenge Garmin it is not
going to change. Garmin is in the business to make money not friends.

Gary P

Well, I think you're correct: Garmin selling to retailers and requiring
them to set minimum retail prices as a condition of selling to them is not a
violation of the Sherman Act. It's not a violation either for us who
consider the practice to be sleazy to shun Garmin like it is a skunk either.

"GaryP" wrote in message
om...
(Jay) wrote in message
om...
Didn't the CD manufacturers get into hot water for setting what
amounted to a Minimum Retail Price Policy?

When an entire industry fixes prices that is illegal. But we are
talking about 1 manufacturer setting prices, their prices.
I am sorry but there is nothing wrong with that. Now if Garmin,
Bendix King, Lowrance and whomever all met in a smoke filled room
and set minimum prices for all GPS equipment that would be a different
story.

The notion of filing a class action law suit against Garmin for
establishing a minimum retail price on their products is silly.
No one forces a shop to sell Garmin. A shop chooses to do so willingly
and in order to become an authorized retailer agrees to Garmin's
retail policies. But it is still only Garmin setting prices on Garmin
products. Now Garmin can increase prices up until they exclude enough
of the market to cause a drop in overall sales and therefore loose
profits. Still their choice! Right now there are enough people
willing to buy Garmin products at Garmin's current retail prices to
keep there production line busy. Until another company comes along
with as good of a product or better to challenge Garmin it is not
going to change. Garmin is in the business to make money not friends.

Gary P

Well, I think you're correct: Garmin selling to retailers and requiring
them to set minimum retail prices as a condition of selling to them is not a
violation of the Sherman Act. It's not a violation either for us who
consider the practice to be sleazy to shun Garmin like it is a skunk either.

" jls" wrote in message . ..
Well, I think you're correct: Garmin selling to retailers and requiring
them to set minimum retail prices as a condition of selling to them is not a
violation of the Sherman Act. It's not a violation either for us who
consider the practice to be sleazy to shun Garmin like it is a skunk either.

Absolutely! But if only a few of us shun Garmin it will have little or no
effect on their policy. As I said earlier too bad UPS Technologies ceased
to exist as an alternative to Garmin. Until a viable competitor comes along
Garmin will continue to reap the profits of their success and mandate
uniform minimum pricing from their dealers.

GaryP