Kapitalism

[SpontaneousOrder]

Monopolies grow naturally, corporations buy each other out / drive competitors out of the market until there is only one. Its up to governments to make sure they don't get too big and abuse their position.

This is patently untrue. Empirical evidence demonstrates the exact opposite, as one would logically expect.

**edit** well, the latter part. It's true that monopolies can grow naturally, and there's nothing wrong with, or bad about, that. That's what I'm referring to when I say 'natural' monopolies previously.

It's only government that stops those natural monopolies from collapsing when their time has come.

[AtW]

Wha's the issue here? Presumably suppliers want this, otherwise they wouldn't do it.

Suppliers want to pay merchant to sell their wares?

Obviously not.

Suppliers are being FORCED TO PAY, otherwise their stuff won't be sold - that's the approach of UK supermarkets that control too big share of the market. Such tactics should be totally illegal like racketeering.

They aren't 'making' anyone do anything. And 'paying them' is just a cash back incentive from a different perspective. Should it be illegal for retailers to offer cash back incentives to consumers?

Retailers can offer cash back to anybody FROM THEIR OWN MARGIN. If supplier out of their free will offers supermarket discount to get special promotion then it's another matter. The reality is that suppliers are FORCED TO PAY for shelf space FFS!

Expect supermarkets to fight back arguing that banning such techniques would result in higher prices for consumers...

I wonder if the likes of Aldi and Lidl do such tulip?

[SpontaneousOrder]

Suppliers want to pay merchant to sell their wares?

Obviously not.

Suppliers are being FORCED TO PAY, otherwise their stuff won't be sold - that's the approach of UK supermarkets that control too big share of the market. Such tactics should be totally illegal like racketeering.

Who says they have any right to have their stuff sold? Do I have a right to have any product I decide to manufacture sold then? You my first buyer?

Suppliers want to pay merchant to sell their wares?

Obviously not.

Do retailers want to pay consumers to buy their products? Obviously yes - they offer cash back all of the time.

Retailers can offer cash back to anybody FROM THEIR OWN MARGIN. If supplier out of their free will offers supermarket discount to get special promotion then it's another matter. The reality is that suppliers are FORCED TO PAY for shelf space FFS!

I think the difference you are alluding to here is illusory. It's the exact same thing.

[AtW]

Who says they have any right to have their stuff sold?

They've got rights to have their stuff sold without any illegal barriers, which extortion from supermarkets is one - total abuse of market position.

[original PM]

They've got rights to have their stuff sold without any illegal barriers, which extortion from supermarkets is one - total abuse of market position.

You are missing the point.

You can sell you stuff to anyone via many different ways (mail order,internet, at a market etc etc etc).

However supermarkets are a great place with high foot fall so you can shift a lot of product... oh but the downside is that a supermarket is expensive to run and so your profits will be eaten into....

I am confused as to what capitalist conspiracy you feel you have stumbled on.

[SpontaneousOrder]

They've got rights to have their stuff sold without any illegal barriers, which extortion from supermarkets is one - total abuse of market position.

1 - calling something extortion doesn't make it so.
2 - it's not illegal.

[vetran]

1 - calling something extortion doesn't make it so.
2 - it's not illegal.

indeed choose not to sell to supermarkets, then you can avoid it.

[vetran]

This is patently untrue. Empirical evidence demonstrates the exact opposite, as one would logically expect.

**edit** well, the latter part. It's true that monopolies can grow naturally, and there's nothing wrong with, or bad about, that. That's what I'm referring to when I say 'natural' monopolies previously.

It's only government that stops those natural monopolies from collapsing when their time has come.

They grow, become too powerful and abuse their position. That is when (or just after) the Government should step in.

[tomtomagain]

They've got rights to have their stuff sold without any illegal barriers, which extortion from supermarkets is one - total abuse of market position.

Why is it illegal? It's simply a fee which reduces the suppliers margin.

If I run a widget selling shop and I source widgets to sell to the general public from a variety of suppliers why shouldn't I be able to use my buying power to get the best deal for myself so that I can use it to give the best deal to my end customers and thus give myself a competitive advantage?

I know it sounds tough but that's business. The suppliers aren't being force to sell at a loss and there are plenty of other supermarkets and small retailers who they can supply to should they choose not to do business with Sainsbury.


In the old days products came with a "Recommended Retail Price", RRP. That was set by the suppliers. The retailers had to sell it at that price, there was very little competition and prices where higher as a result.

[d000hg]

Yes but this is a free market economy.

See the key thing is no one is forcing anyone to sell to supermarkets.

Yes, they can choose to go bankrupt instead.