Martin, Isn't it already done in the industry any way. I'm looking at a
Bosch Master Automotive price sheet that has
List, Dealer and Jobber and I have contracted for even a better price. So
Bosch is setting the price and everybody uses it for the guide. Knowing
this
and the cost I get is one of the reasons that prices can go lower.
What I was talking about is called a WD ( Warehouse Distributor ) That
buys
way below Jobber and then sells the corner box retail at a fixed price (
like 20% off jobber ) to all but they are also selling to all the corner
retail stores the same. If you ever noticed over here, the independent
retail stores are at a disadvantage because of the huge amount of
inventory
that would have to be carried, so most run trucks all day back and fourth
to
the WD picking up parts.. Least that is the way a lot of it is done over
here. The auto zones and large stores will buy the bulk of the inventory
direct from the factory like Bosch and pocket the profit because they sell
at the published prices unless they just want to discount. Then again if
they want to they may use a WD, but they don't make the profit.
John
-----Original Message-----
From: Martin Gutkowski [mailto:webmaster@xxxxxxxxxxxxxx]
Sent: Friday, June 13, 2003 8:26 AM
To: DMCForum@xxxxxxxxxxxxxxx
Subject: [DMCForum] Oligopolistic Competition
In all this discussion on vendors "getting together", consider the
economic argument.
Even if you have never studied economics (I took it at A-level - which
is the exams you take at 18 that get you into university over here), you
probably know the terms "cartel" and "collusion" and that they are BAD.
You may also know the term "monopoly" which is one supplier controlling
the market - and with complete control on the PRICE. In genuine
monopolies on necessity goods, government control is usually exercised.
Collusion results in a number of vendors acting as a monopoly - they can
be considered the same thing. BAD.
What we have in the DeLorean community is a small number of important
vendors. This is known as Oligopolistic competition where a small number
of suppliers control the majority of the market. And anyone thinking of
studying economics would do well to cite it as an example - you will
certainly be writing an essay on it at some point!
My point: The fact that these vendors charge largely the same price and
compete against each other in this small market is a GOOD thing for us
all. If one supplier starts producing a part more cheaply, other
suppliers MUST drop their prices too, or lose the vast majority of their
sales, because there are no alternatives. All this is classic behaviour
by suppliers in an oligopoly and believe me, far better than the
alternative.
Check out "oligopolistic competition" on Google and you'll surely turn
some info up (but be warned, Economics is 90% boring, but it's great
having done it to know for a fact all the nonsense arguments politicians
come up with - but I digress)
Martin
Economics A-Level, Grade A.
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