We read an article today on Power Retail about the ACCC’s plans to help small online businesses get their hands on stock without the ‘big boys’ cornering the market. They’re also going after distributors and wholesalers who are telling their retailers what they can and can’t sell product for.
This part I absolutely don’t agree with. I think manufacturers, distributors and wholesalers have every right to protect the RRP of their products if they choose to. Why? If they don’t, and the brand gets devalued, then it will destroy their business and the product won’t exist anymore.
Take Colorado for example. They devalued their own brand by constantly running 30-50% off all items in store. I used to spend loads of money with them and wait for the sale. They were a great brand with great quality products, but by devaluing their RRP, they were forced to ALWAYS have sales, and in return, reduce the quality of their products to keep their profit margin.
Result? Colorado stores don’t exist anymore. In the short term, the ACCC’s plans will be great for the consumer. In the long term, brands are going to get trashed and jobs will be lost. I don’t agree with this one.