Mikes Cigars loses Oliva.

[jaymz]

Originally Posted by SeanGAR

Some competitor squealed on Mike's and complained that they were undercutting their price. I prefer capitalism and competition in the marketplace, not communistic pricing practices. I won't buy more Olivias as a result of this, but I doubt that will make a dime's difference in their bottom line. I really don't care, it is the principle.

What is good for the consumer and the economy is that companies obey the contractual agreements that they are legally bound by. In a capitalist system, Oliva has the right to sell their products at the price they determine is good for their company. They also have the right to require certain concessions be made by the retailer carrying their wares. The retailer also has the right to not agree to those terms, and refuse to stock Oliva's product. If what the OP said is true, Matt's Cigars got caught violating a legal contract multiple times and got slapped on the wrist for it. This was dishonest business practice and should be discouraged. If a company is willing to defraud a company as large as Oliva, how honest do you believe they will be in their dealings with you as a customer. I as a customer will be thinking twice about purchasing anything from Mike's Cigars in the future.


(FYI - in a communist system, the state would own both the cigar manufacturer *and* the retail outlet, and the employees would receive whatever money the government felt like doling out to them)

Originally Posted by jaymz

What is good for the consumer and the economy is that companies obey the contractual agreements that they are legally bound by. In a capitalist system, Oliva has the right to sell their products at the price they determine is good for their company. They also have the right to require certain concessions be made by the retailer carrying their wares. The retailer also has the right to not agree to those terms, and refuse to stock Oliva's product. If what the OP said is true, Matt's Cigars got caught violating a legal contract multiple times and got slapped on the wrist for it. This was dishonest business practice and should be discouraged. If a company is willing to defraud a company as large as Oliva, how honest do you believe they will be in their dealings with you as a customer. I as a customer will be thinking twice about purchasing anything from Mike's Cigars in the future.


(FYI - in a communist system, the state would own both the cigar manufacturer *and* the retail outlet, and the employees would receive whatever money the government felt like doling out to them)

What I was saying just much better. Well said. People seem to have forgotten what free market is and that our nation was once the place where it happened.

[SeanGAR]

Originally Posted by jaymz

(FYI - in a communist system, the state would own both the cigar manufacturer *and* the retail outlet, and the employees would receive whatever money the government felt like doling out to them)

Prices are fixed in communist and socialist systems. They are not in a free market. Your comment about who owns the store and what employees are paid is irrelevant.

I'm still waiting for a copy of Mike's contract with Olivia.

Originally Posted by SeanGAR

Prices are fixed in communist and socialist systems. They are not in a free market. Your comment about who owns the store and what employees are paid is irrelevant.

I'm still waiting for a copy of Mike's contract with Olivia.

Setting a minimum price for a retailer to sell your goods is not price fixing. Price fixing is when the retailers get together and artificially raise prices on agreement. Msrp is standard in a free market. As is decreasing supply to increase demand. So is flooding the market to devalue something. All of it is free market tactics. You may not agree with them but it doesn't make them communist. You made an emotional comment that was incorrect. No harm or shame in it.

[SeanGAR]

Originally Posted by Legend

Setting a minimum price for a retailer to sell your goods is not price fixing. Price fixing is when the retailers get together and artificially raise prices on agreement. Msrp is standard in a free market. As is decreasing supply to increase demand. So is flooding the market to devalue something. All of it is free market tactics. You may not agree with them but it doesn't make them communist. You made an emotional comment that was incorrect. No harm or shame in it.

If you set or fix a price of something, you are fixing the price. If that disagrees with specific accepted jargon ... well, gee. I can understand why Olivia is interested in maintaining cigar prices in the market, but Mike's prices on most things are 10% below MSRP. Big whoop. I get more than that here at my local. But I'm not a competitor and am not going to squeal to Olivia. I haven't purchased anything from Mike's in years, I really don't care.

Originally Posted by SeanGAR

If you set or fix a price of something, you are fixing the price. If that disagrees with specific accepted jargon ... well, gee. I can understand why Olivia is interested in maintaining cigar prices in the market, but Mike's prices on most things are 10% below MSRP. Big whoop. I get more than that here at my local. But I'm not a competitor and am not going to squeal to Olivia. I haven't purchased anything from Mike's in years, I really don't care.

Your jargon with regards to price fixing was not the issue. You were claiming communist practices. I and a few others here simply disagreed and and clarified that it was in fact free market that was happening. This is how free market works. You don't like it fine. You don't have to. We simply wanted to clarify that it was not communism.

[rrplasencia]

[quote=jaymz;259321]dishonest business practice and should be discouraged. If a company is willing to defraud a company as large as Oliva, how honest do you believe they will be in their dealings with you as a customer. I as a customer will be thinking twice about purchasing anything from Mike's Cigars in the future.
[quote]

I've dealt with mikes on a wholesale level. Sometimes what goes around comes around. I've had direct dealing with Miami Cigar and Fuente Newman. Both ask you to sell their cigars at their suggested msrp, which is extremely fair price(Padron does the same). You don't have to do it, but then you don't have to become one of their retailers. That is a free market. There are plenty of other cigars i could have carried (especially in Miami) but i wanted those, ergo i agreed to the terms.