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Ouch - Penn gives Merrick Tackle the boot


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#16 TimS

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Posted September 30 2004 - 4:54 PM


Quote:







Originally posted by Texicans:
Don't know what if any controls Shimano may have in place regarding their fishing products.



Absolutely, Shimano has a very strict pricing policy. In fact, to buy their highest end products, all retailers must buy them directly from Shimano...even though they purchase them through a distributor, Shimano drop ships them to the retailer. This way Shimano ultimately has complete control over who is able to retail their products. I've not heard of any "brick-n-mortar" type restrictions on Shimano fishing tackle retailing, but on their highest end or "Top Shelf" products, they could instantly enforce a brick-n-mortar only policy if they chose to do so.
I have nothing against a manufacturer maintaining some control over retail pricing - it certainly offers retailers incentive to offer their products. Who wants to stock reels that wholesale for $200 and can be purchased retail online for a few percent more? Hell, shipping costs would eat up any possible profit.
What really burns me up is when a company says they have minimum retail pricing and then just ignores retailers advertising those same products for less than the minimum retail price Either have a policy or don't, but don't bother if you aren't gonna enforce it 100% of the time
TimS


Show someone how to catch striped bass and they'll be ready to fish anywhere.
Show someone where to go striped bass fishing and you'll have a desperate report chaser with loose lips.
We love our stripers - please don't take more than yah need.


#17 Kings over Queens

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Posted September 30 2004 - 5:21 PM

Tim, I like Penn's policy. As you might guess, I'm not a big fan of "Etail" and much prefer doing business with merchants. I like to going to the store, fondeling the merchandize, chatting up the owner, and plunking down my cash. I would much rather pay a premium to a guy like Kash or Zim than waiting for the UPS driver to show up with a pacakge...but that's just me. You, I'd buy from ya, but only cause I met ya and we fished together.
I think the Walmarts and Sports Authority's of the world create more of a problem than solution, and I fear the same thing is going to happen to B&T's. As an example, where do you go to buy office supplies? 20 years ago when I entered the business world there were several office places to shop. Now I'm forced to go to Costco or Staples. Sure, I might save a buck or two on a $20 case of copy paper, but now I've lost touch with a fellow business person, and it's that type of contact that makes the world go round.
So if I buy the 975, I'm gonna have to come over and shoot the chit first, have a cup a joe, look at the fish tank, then I'll plunk down my cash.



#18 Otter

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Posted September 30 2004 - 5:32 PM

beware the choggy


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#19 TimS

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Posted September 30 2004 - 5:55 PM


Quote:







Originally posted by Kings over Queens:
So if I buy the 975, I'm gonna have to come over and shoot the chit first, have a cup a joe, look at the fish tank, then I'll plunk down my cash.


It's a deal...but of course I'll have to raise the $218 "online" price to the $249 "brick-n-mortar" price...but the good news is, I'll throw in the coffee
TimS


Show someone how to catch striped bass and they'll be ready to fish anywhere.
Show someone where to go striped bass fishing and you'll have a desperate report chaser with loose lips.
We love our stripers - please don't take more than yah need.


#20 starjcb

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Posted October 01 2004 - 12:17 AM

Merrick will not be hurt in the least ! Penn will ! Merrick should have honored the contract they signed no matter how dumb it is .
I'd say Penn is right . Dead right ! I don't think Penn will last more than 2 years .



#21 AdrianF

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Posted October 01 2004 - 12:33 AM

Penn needs to come up with some good reels quick before they go the way of the do-do bird.
SS's are way overpriced, slammers dont seem like anything special. Z's are outdated and only have a following with surf guys and it seems like only northeast surf guys. I think the only thing keeping them alive is the internationals, and i would think thats a pretty small market with lots of competition.


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#22 nycman

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Posted October 01 2004 - 12:33 AM

one popular local online retailer skirts those contracts that require a fixed price set by the manufacturer by keeping products (like shimano reels) with that stipulation on permanent "sale"
i tend to side with merrick on this and think penn needs to rethink their policy. restricting product at a time when competition is literaly tearing their formerly huge market share apart is dumb IMO but hey, its penn, i expect nothing else but the wrong move at he wrong time. heck they just release on overpriced yellowtail special for the west coast guys. only 10 years late, penn! they have some great reels out there, dont get me wrong, i just think in a business sense they are slipping even further.


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#23 MakoMike

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Posted October 01 2004 - 1:29 PM

My two cents; I rthink Penn is making a very bad business decision, but that's their problem. But I also think that what they are trying to do is illegal retraint of trade. Manufacturers enforcing "minimim retail pricing" have been found by the U.S. courts to be in restraint of trade and frined. The way things stand today, to the best of my knowledge, is that Mfgs. can enforce a "minimum advertised price" but they can prevent any wholesaler or retailer from selling at and price they please. You may have noticed that with a lot of online shopping plces now, you can't see the price until you go to check out. That's because of the minimum advertised pricing policy of their suppliers. The "gold Label" program is nothing but an attempt to drive low cost suppliers out of business. I think if Merrick tackle (BTW they did the same thing to Shark River earlier this year) wanted to sue them, Penn would loose. And BTW- whatever it said in any contract is immaterial, contract terms that violate a well defined public policy are automaticall void and unenforceable.


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#24 Ditch Jigger

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Posted October 01 2004 - 1:50 PM

Does the fact that Merrick Tackle is a distributor, and not a retailer, make a difference here?


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#25 TimS

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Posted October 01 2004 - 2:01 PM


Quote:







Originally posted by Ditch Jigger:
Does the fact that Merrick Tackle is a distributor, and not a retailer, make a difference here?


You would think so Ditch...but Penn is deciding for Merrick whom Merrick can sell Penn products to. Hey, if that's what Penn whats, I'm fine with it, no sweat...I just think it's odd to restrict exposure/availability of products in todays competitive market
TimS


Show someone how to catch striped bass and they'll be ready to fish anywhere.
Show someone where to go striped bass fishing and you'll have a desperate report chaser with loose lips.
We love our stripers - please don't take more than yah need.


#26 Duckwump

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Posted October 04 2004 - 8:52 PM

Shark River Tackle which had great prices on certain Penn reels has also complained about Penn's use of gold level dealers as an unfair restraint of trade.
Tom




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