Fender Europe fined

IceCreamMan

There was an article in the news the other day, fender Europe have been fined for basically price fixing. Considering ZA fender gets its stock via fender Europe this would indicate consumers in za are possibly over paying for fenders and squires etc. hopefully this will result in fairer pricing.

V8

IceCreamMan I was reading about this in Mar/Apr - They had just slapped Casio on the wrist (3.7m squids IIRC) and were rumbling about similar for Fender.

https://www.gov.uk/government/news/cma-alleges-guitar-firm-illegally-prevented-price-discounts

The CMA’s findings are provisional, and no final decision has been made about whether there has been a breach of competition law. The CMA will now carefully consider any representations from the company before reaching a final decision.

Interesting that you feel we may see better prices locally - I have my doubts...mainly due to all our Fender stock coming via one local distributor that historically hasn't given a &*(%^ about price gouging locals.

Though...I do hear TOMS are expanding...which I think might make competition locally more -eerr-umm competitive! So we might see Bothners pass on something to the consumer - though I reckon their prices are so padded they wouldn't need to wait on something happening from Fender Europe.

Just my 0.02c rant for today - Nice to see posting ICM - have you expanded yer collection of lefties?

ScottyDogg

V8 though I reckon their prices are so padded

Haha yeah - standard 30% discount applied (at least at TOMS). Would love to see how much their mark up is to start off with.

IceCreamMan

V8 not added any recently. Not playing as much either. Sadly. Thinking of going down to Anderton’s and asking them if they know of any other guys like me. I also live round the corner literally of a well known luthier of the area so will pop in there sometime. Brian Cohen. A saffa too.

However, am quite keen to get a mex strat. White maple neck. Never had a maple strat. Will keep an eye out on flea bay

V8

ScottyDogg It depends! From the little I do know, companies with their own import 'division' E.g. Bothners, Mars, Marshall will all get better pricing on the item they import than competing local retailers - compare Raru's pricing on Fender/Cort vs Bothners and you'll see what I mean

On strings 'n consumable's - it can be 100%+...(E.g. At Bothners, a set of Ernie Ball's retail at R120, should cost them under R60 landed). That's why stores love selling ya gig bags, capo's, cables, straps, etc - great $ spinner.

On guitars/amps/fx/etc...I'm really not sure. I reckon it varies quite a bit from brand to brand. How I think about it - check the big US retailers, figure out the lowest online price and then guesstimate that -at worst- that would be the landed cost in SA (ex vat). I reckon the local big importers (Musical Distributors, Rockit) bring enough things in to -at least- be able to land items at Sweetwater pricing. Not sure that's a fair way of approaching it though.

guidothepimmp

IceCreamMan with a great big apple sticker on eh? Old habits

IceCreamMan

Fender UK were fined 4.5 million pounds... that's astronomical.

V8

IceCreamMan

Between 2013 and 2018, the company, founded around 70 years ago in southern California by Leo Fender, required its guitars be sold at or above a minimum price in Britain, the UK’s Competition and Markets Authority (CMA) said on Wednesday.

This kind of practice means that when customers shop around, they find retailers tend to be selling the same products for roughly the same price, the regulator said, leading it to impose its biggest such fine yet.

Having as look at the financials - It's a 4.5 mil fine for 6 years worth of price fixing

. In that period they increased assets by +/- 5.5 mil, working capital by +/-4.8 mil, while liabilities grew by +/- 1.6 mil.

In my thumbsuck estimation the fine is around 40-60% of the gains they made over the period. Ouch. Odds of a appeal?

IceCreamMan

I believe they have agreed to pay the fine. If I see anything I will update.