Nathan Surgenor
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This might be worth picking up before Iello introduce a mandatory RRP on sellers: https://www.theboardgamehut.co.uk/board-games/126-king-of-ne...
Link to the BGG Listing
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Andrew Johnson
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I thought that was illegal.
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Alexis MG
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Their daily deals are really good, definitely worth following / signing up.
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Nathan Surgenor
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infectedeggs wrote:
I thought that was illegal.


I'm not sure how it's supposed to work because I don't understand all the legalese that surrounds these things, but here's a link to the policy on Iello's website if you're interested: http://www.iellogames.com/mapp.html

Whatever is happening, £18.99 is a good price!
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Ric
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ndsurgenor wrote:
infectedeggs wrote:
I thought that was illegal.


I'm not sure how it's supposed to work because I don't understand all the legalese that surrounds these things, but here's a link to the policy on Iello's website if you're interested: http://www.iellogames.com/mapp.html

Whatever is happening, £18.99 is a good price!


Thank you for the link, I had a read and found "This MAPP shall only ever apply to a jurisdiction, vendor, person or entity in the United States".

Doesn't mean we won't be affected over here, but does mean that we shouldn't.
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Andrew Johnson
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Might be a similar thing to what the big branded companies try to do (Levi, Wrangler, Nike etc.)
Vendors can import stock from third parties through "grey imports". The brands don't like it, and try to stop it - but it is not illegal.
 
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Dan
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It'd be illegal to do that here.

'IELLO recognizes that Vendors are free to make their own decisions to advertise and sell any IELLO product at any price they choose, without consulting or advising IELLO. Similarly, IELLO will exercise its right to make its own decisions regarding who it chooses to be an authorized Vendor '

is blatantly price fixing. 'you're free to do whatever you want, but here is a thinly veiled threat about what happens if you do'. I mean, until we leave the EU anyway, then who knows?
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A very long reply. Sorry, I got a bit carried away....

I don't know the details of IELLO's policy, and you may be correct that it amounts to price fixing. However, there may be valid reasons why a brand may wish to do this.

In a typical scenario, most vendors will buy a product from the brand (or manufacturer) for X, add a mark-up which more than covers their operating costs, and sell for Y. The value of Y at each vendor will depend on the operating costs of that vendor, but generally there will be a similar minimum operating cost (even the most efficient parcel-packer can only pack so many parcels per hour, for example). So Y will end up being similar at several vendors (though some will decide to sell for a much higher price). That's a "common sense" approach to pricing.

A vendor might decide to sell for less than Y (but more than X), which may hurt their short-term profitability, but helps lure customers away from competing vendors, which (hopefully) improves their long-term profitability. Other vendors may respond by lowering their prices, too. Good for the consumer, Yes, so long as the lower profitability does not result in some vendors going out of business.
In my last job, that's how my company, and all their competitors, approached pricing. It didn't work very well because they were all doing the same thing (and killing their own profits). shake

That approach can be disrupted when a vendor decides to sell at cost price, or even lower. (Think Tesco and their tin of 7p beans). If the vendor has deep enough pockets to sell below cost price for an extended period of time, it can drive competitors out of business. That's bad for the consumer. It's also bad for the original brand, as it increases their reliance on that one vendor, eventually to the point where they become dependent on that vendor. Then the vendor can start to dictate the buying price (X), since the brand can no longer afford not to sell through this vendor. It's not uncommon for powerful vendors (Amazon, Tesco, whoever) to exploit this tactic. But for the brand, that's a terrible position to be in.


Alternatively, it may be simply that the brand wants to maintain the perception of quality. Tesco never sold a tin of Heinz beans at 7p. I suspect Heinz have a contractual clause preventing Tesco for selling Heinz beans for 7p. There is a perception that Heinz beans are good quality, and that quality is reflected by the price. If supermarkets started selling tins of Heinz beans for 7p, it would diminish the perceived quality of Heinz beans, and people would be less willing to pay £1.49 for a tin (tbh, I've no idea what beans cost these days. It's bean a while since I bought any....) But Heinz beans must be good because they cost £1.49 instead of 7p, right?
Apple follow this approach, as their products are all "over-priced" in the sense that an i-phone might cost $200 to make but is sold for $600. The high price enhances the perceived quality, which increases in the desire for the i-phone. You can't buy one for $250, nor for 7p.


Lastly, to Andrew's point about the grey imports: for a brand, that can be a real a headache. Selling a product at the same price in all countries doesn't make sense for many brands as things like tax rates and local operating costs vary, and exchange rates fluctuate while retail prices remain static. So £20 might be a fair price in the UK, while the equivalent of £25 might be a fair price in Switzerland, but £10 might already be a bit steep in Ukraine. The brand needs to find the right price for each market. However, if an enterprising Ukrainian buys in his home market for £10 and sells in Switzerland for £15, then there's a problem. Nobody buys from the brand for £25 in Switzerland any more. That destroys the brand's profitability in Switzerland, so it needs to make up that loss in other markets, leading to a price increase in both the UK and Ukraine. But at £25, fewer people in the UK buy the product, and nobody in the Ukraine buys it either. So the brand loses out in all markets. That's why they try very hard to stop grey imports, but it's very difficult to do.
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