WHY DO THEY NO LONGER SHOW MANUFACTURERS PRICES ON TELEVISION ADVERTS?
Have you noticed that the only prices we see any more seem to be on adverts from retailers, and that the ‘old-fashioned’ MRP (Manufacturers Recommended Price) no longer seems to exist?
There is a very clear reason for this. Manufacturers are now being told how much they will be paid for an item by the large supermarkets, instead of the makers saying how much they will charge retailers for a particular item. The supermarket will then decide the price they will charge.
Lets take a typical example:
A major manufacturer creates a new microwave cooker. Regardless of the amount of research and development the makers have put into the item’s creation, when it comes to marketing it, they will be told just how much the major retail outlet will pay for the article, usually cutting the makers profits to almost non existant, whilst at the same time increasing their own phenominally.
If the maker should reject the offer, they will only find the other outlets will only offer them about the same, as many of them appear to be working together, choking the marketplace. As a result, the item will not reach the shelves on major outlets.
Until recently, any ‘rogue’ manufacturer could market their own products using the internet, but now there are major outlets there also doing the same thing.
How can you buy something if you don’t know it exists in the first place?
If you think about it, this is the perfect way by which these outlets can actually control not only what you buy, but how much you pay for it. So much for competitive marketing.
There must be thousands of excellent products which have been created but never made the stores thanks to this restrictive marketing practice.
There is only one person (or group of people) who profit from this, and that is the shareholders and Boards of Directors guiding the major retailers, certainly not the customer, and there is now no-one who can stop them.
Our politicians could put a curb on their practices, but they have mostly been ‘house-trained’ by these outlets.
We have already seen how smaller farms have been forced to sell up thanks to supermarketing pricing methods, and I fear that they are only the tip of the iceberg. Who are next?