Is this legal or Price Fixing???

[Mike]

Just wondering what some of the knowledgable brethren think of this matter. I am looking at a particular performance chip that is very popular for the Ford 7.3.

I can find it brand new on ebay from 3 different sellers with great feedback and they have sold many of this item. Upon looking at the manufacturer site there is a claim that items purchased on ebay do not carry a warranty, buyer's beware more or less.

To me, it seems like price fixing, meaning, if you don't pay our "suggested retail" then we will not warranty your product and you are out of luck, even if you buy it from one of our distributors.

Any ideas on the matter?? It would be a saving of $160 or 40+% off their "listed" price. The sellers I am looking at have sold over 100 of these items so they have a good supply.

I sent and received the following questions and answer below.

My email to the manufacturer,,,,

I am looking to purchase a "shift on the fly" chip for a 1999 Ford with the 7.3, it is the late model manufactured in June 1999. Anyhow, I do a lot of ebay selling and buying and I have noticed that there are a couple of sellers that have the **** chips for sale in the $230-270 range. I was looking around and found some comments on the return form that stated there were some unauthorized sales on ebay,,,Can you tell me how to tell the difference from an original or a fake? Are they actually fakes or just refurbs and seconds? It seems like these guys are getting their hands on a lot of units that are stamped **** if they are seconds or returns.

I am just looking for some anwers and always value oriented, no harm meant, if I can save a few hundred, I just want to know the downside.

Reply from the manufacturer,,,

Chips on ebay can be used or new depending on the seller. The main thing is if the seller is advertising a new chip for under $384.30, which is MAP pricing. It will not have any warranty through us. If a customer has any problems we require a copy of their original invoice, so if the price is below MAP, any issues are on your $$$.

Unfortunately most of these ebay sellers buy through warehouses that distribute our product so it is hard for us to control, other than removing our warranty b/c of not following the pricing schedule we have set up.

[texag93]

I wouldn't call it price fixing, sounds like Capitalism to me. Many companies set pricing, Oakley and Underarmor are two that come to mind, but haven't heard them say that it would void a warranty because of the purchase price. ????

[Rudey]

I don't think it's illegal price fixing. It's a way for a manufacturer to protect the retailers. It's sold for the same price whether you're a Mom and Pop place or Wal Mart.

Apple does the exact same thing with their computers, iPods, etc.

[Heath]

Companies do that. Under Armour does let its dealers sell below certain prices. Nocona Athletic works off of MAP pricing as well. MAP is Minimum Advertising Price if you did not know.

[dgrimesag92]

Supply and demand....simple economics.

[Kdog]

How much is the warranty worth to you?

[BTLowry]

I see 2 choices:
1)Buy the chip at a discount and if it goes bad buy another one
2) Buy from someone else

Surely there is still more than one company making chips for the 7.3. Maybe check with qzilla, or do a search on the web

[Luck_of_the_Draw]

have the invoice state the price they want for the warranty.

[26'UP]

The warranty falls on the manufacturer. Not the seller,unless it is an instalation problem.

[Mike]

I guess I did not explain the question that well, I apologize. I am very familiar with MAP pricing and the retail world, I ran a multi-million $$ golf retailer for 9 years and sold all kinds of goods including Oakley.

The point I am trying to get across is that depending on which retailer you purchase from determines whether you get a warranty on their item.

I go to Orlando a couple of times a year and purchase several hundred $$ worth of Under Armour at a fraction of the cost, maybe 25% of the MAP price and I have never had a warranty issue or did they ask where I purchased the goods.

This is akin to Dewalt selling its drills to Home Depot, Lowes and Ace Hardware(True Value), which the latter is a distributorship, and then only providing a warranty to the Home Depot and Lowes customers.

I understand about protecting retailers in certain environments but in reality, the manufacturer chose who they let have the product. It almost seems that they are upset with the distributor and thus negating the warranty in an attempt to slow their sales.

have the invoice state the price they want for the warranty.

If I choose to purchase via ebay, I will go this route.

[Bill]

I see 2 choices:
1)Buy the chip at a discount and if it goes bad buy another one
2) Buy from someone else

3) Call the closest AutoZone and see how much they charge for the chip if you have the manufacturer's part number. They may be cheaper. Just an idea.

[Shadow]

it's not price fixing. some retailers must charge certain prices while others may not, the difference is that the company may have different price structures for support offered. Just like if you buy a Dell or HP or any other computer with Windows preloaded you don't call Microsoft for support you call Dell or HP, but if you buy the product straight from Microsoft you get the support straight from them.

Many people who sell on Ebay offer referbished or like new items or will pass one off as new and you wouldn't know any difference. Just be sure to ask the seller that if you purchased from them a "new" item and have a problem with it or it screws up your computer system in the truck if they cover the damages since you don't have a MFG warrenty.

[Rat]

Basically it's not price fixing/gauging unless they have a monopoly and/or are charging far more for it than what is economically feasable for something that is "required", like gasoline during a natural disaster.

MAP is put in place to protect products and manufacturers from 'name dillution' and is perfectly legal; many companies do it including many in the archery industry. Depending on the agreement with the distributor the company can choose to honor, or not honor, the warranty; but you may still have state and federal warranty protection and/or Credit Card assurances as well. Many 'big name' manufacturers I deal with have mAP policies and several retailers I know use the check out cart to get around this. The MAP is shown on the web-site but the discount is taken when viewed in the cart, this is splitting hairs but has worked for several on-line retailers.

As an aside, a manufacturer may build/sell to a distributor or retailer a certain piece of gear with the express instructions not to reveal who the maker is because their gear is made the same but they charge more for it. Cabelas and BPS both do this with their 'branded' gear, just another way to circumnavigate the MAP.

[Coacher]

I had some of the same questions with a chip...since you did not say the name of yours I guess we should keep it quiet, but I contacted the manufacturers and they actually told me to buy it through a dealer. I found it a little over $100 cheaper at a dealer and that was the installed price. They told me to make for sure that if I bought it on eBay that I was using an authorized dealer.

[Heath]

I go to Orlando a couple of times a year and purchase several hundred $$ worth of Under Armour at a fraction of the cost, maybe 25% of the MAP price and I have never had a warranty issue or did they ask where I purchased the goods.
.

Is this store a discount store that is owned by Under Armor or just a regular dealer. If they are a regular dealer then they will get reported to UA and will lose their account.