Price fixing in Europe and France

[woolybanana]

Could consumers sue these people, I wonder, if they bought from them during the price fixing period.

But I feel this is just the tip of the iceberg as France is riddled with it:

http://news.bbc.co.uk/2/hi/business/10395646.stm

[Gardengirl]

Very interesting article. We bought Grohe basin and shower taps for the apartment 2 years ago, through the developers, at what was quoted as cost price. We thought they were expensive, but as they were fitting everything else, it was easier to let them get on with it. (We thought it would be better to have it all complete, so we could move straight in. So much else was wrong with the apartment, so we couldn't, but the taps and sanitary wear were fine!) We also had them fit an second WC, by Allia, rather than the Villeroy & Bosch they were fitting, which was horrifically expensive.It's a little higher than normal, so is easier on creaky knees!

We also wanted a particular shower made by Matki we'd seen in UK,  contacted the suppliersof Matki in France and were quoted a monstrous price, so just had a space left for it, with only the shower tap unit fitted.

We had the shower cubicle delivered to our house in UK, it was collected by the company who were delivering furniture for us from and through John Lewis, and had it brought to the apartment. By the time we ordered it, the price in France was double that in UK, and it was expensive there! (It was my OH's choice, and it's very nice to look at - although I'd have been as happy with a more basic model!)

Deivery cost about £1500, but was more than covered by the savings on the cost of the shower, bed, chair, computer cupboard etc. They also brought out a basin and fitted cupboards for the bathroom, and boxes of stuff from Lakeland and elsewhere, which saved us lugging them out in the car.

We are part way through fitting a new bathroom in UK. The taps are Grohe and the fittings Ideal Standard; much cheaper than in France - we almost  felt as though we had a bargain! [:)]

I'm sure you're right about this being the tip of the iceberg.

[WJT]

I know that the crash of the pound hasn't helped because if I convert prices in France to what the level was when we first bought at 1.5, the prices of course are much lower. But even then I think the prices in France on most things seem astronomical and as much as I hate to admit it I try and source everything for our renovation in the UK.

I can buy much higher quality items that are much lower in cost than the very low end items in France. A real hassle but is well worth it in the end in my opinion.

 

[velcorin]

There is a difference in mindset between Anglo-Saxon companies and Continental companies. They genuinely don't understand that cartels, even bribery, is illegal. To French/German/Italian companies a cartel is perfectly logical. Fix the Prices, fix the Volumes, and compete on Added Value only. Purely from a business viewpoint, it makes perfect sense. It's when you look at it from the Anglo-Saxon customer focused view when there is a problem.

Having worked for a German company for many years, I do actually have some sympathy with their view. It permits a business to plan, budget, and invest without the market interferring. You should also bear in mind that until 1999 bribery, and price-fixing, was perfectly legal in Germany, there is a generation of (now) senior managers who were bought up paying for contracts, and cooperating with competitors. See Siemens, Deutsche Bank, Daimler (Merc), BASF, Continental, et alia.

[just john]

Of course I abhor any sniff of price fixing, even more sadly because the guilty price fixers are the sort of quality goods I prefer to buy, and while like others, shop around and usually buy in UK, there is a lesson here, because these companies don't just squirrel the margins away but generally invest in superior products.

[velcorin]

Don't misunderstand me, I wholeheartedly disagree with cartals (and bribery). They are insidious to the companies as well. At a corporate level, the customer becomes irrelevant, and forgotten, something SO many German companies did. They just borrowed money to invest knowing that the customers had few options, and will buy. Recession hits, customers diasappear, orders evaporate, unable to service loans, go insolvent (75% of European insolvencies have been in Germany v 2% in the UK).