Price Fixing - Tyres

[AndreZA]

where is minty's Mampara

 

They are in Rosebank, JHB.

[GrumpyOldGuy]

Its going to be the same as everything I bet, slap on the wrist, pay the fine and try find other ways of ripping us off. Its the same story all the time

 

No, I dont think so. The competition commission is actually one of the few commissions with teeth and prepared to use them, hense the bread price fixing issue with fines of tens of millions been levied and enforced.

 

The cement price fixing issue was also handeled well and I think the parties have paid up.

 

I cant see the tyre industry fighting this principle, they will admit and try and reduce the cost (fine) naturally, but with Bridgestone turning witness in return for indemnity, the other companies are cooked.

[GrumpyOldGuy]

- I think sunglass prices are being fixed as well?

 

Well, if you have proof, you can report them to the competition commission and I am pretty sure they will investigate.

 

You will need to supply your name and all your documentary proof of course, you cant do this annonymously for obvious reasons.

 

Has anyone heard any more about the cycling price fixing debacle - I heard it was referred to the tribunal with an order of costs (suggested fine), but thats all I know or have heard.

[Caerus]

Well, if you have proof, you can report them to the competition commission and I am pretty sure they will investigate.

 

You will need to supply your name and all your documentary proof of course, you cant do this annonymously for obvious reasons.

 

Has anyone heard any more about the cycling price fixing debacle - I heard it was referred to the tribunal with an order of costs (suggested fine), but thats all I know or have heard.

 

 

All well paying a fine, but where does the money go? Never back to the consumer. So we always loose out.Maybe only in the future you save, cause the price will come down. But were their profits still larger then the fine?

 

As for the sunglasses, im not a 100% but when you see the prices we are paying compared to what I can get them overseas is crazy - And most shops have about the same prices and hardly ever will give you discount for business?

 

Maybe Im way off the mark but Im pretty sure something fishy is also going on.

[kosmonooit]

When I kitted out with Conti UST Race and Mountain Kings earlier this year, the going price was R600 where ever I looked, and thats what I paid.

 

Now @ CWC R450

 

CRC: R300

 

Now I will support CWC when reasonable against CRC

[GrumpyOldGuy]

All well paying a fine, but where does the money go? Never back to the consumer. So we always loose out.Maybe only in the future you save, cause the price will come down. But were their profits still larger then the fine?

 

As for the sunglasses, im not a 100% but when you see the prices we are paying compared to what I can get them overseas is crazy - And most shops have about the same prices and hardly ever will give you discount for business?

 

Maybe Im way off the mark but Im pretty sure something fishy is also going on.

 

Yeah, quite right there, I believe the money go's to the state, apparently, to keep these commissions running.

 

Generally the fine is suggested at 10% of annual turnover, which in the case of the bread cartel, is massive, I dont know the values involved in the tyre industry, but you can be sure 10% of their annual turnover will leave a mark on the bottom line, hense I expect them to fight tooth and nail to have it reduced.

 

On the other hand, these big conglomorates generate an incredible amount of money, its not related, but I see BP is whining because the gulf oil spill so far has cost them 5 billion dollars and rising, - they shouldnt say too much, as I see their 2010 quartely profit was 6 billion dollars - 6 billion dollars profit in 4 months.....now theres a business to invest in.

[GrumpyOldGuy]

When I kitted out with Conti UST Race and Mountain Kings earlier this year, the going price was R600 where ever I looked, and thats what I paid.

 

Now @ CWC R450

 

CRC: R300

 

Now I will support CWC when reasonable against CRC

 

Just as a matter of interest, is the Conti distributor for bicycle tyres part of the Continental group or is he / she an independant.?

 

I dont know, but I would imagine bicycle tyres is far too small a business to concern the Continental tyre group on a distribution basis, so I am going to assume they are independant, but, yeah, I dont know.?

[Caerus]

Yeah, quite right there, I believe the money go's to the state, apparently, to keep these commissions running.

 

Generally the fine is suggested at 10% of annual turnover, which in the case of the bread cartel, is massive, I dont know the values involved in the tyre industry, but you can be sure 10% of their annual turnover will leave a mark on the bottom line, hense I expect them to fight tooth and nail to have it reduced.

 

On the other hand, these big conglomorates generate an incredible amount of money, its not related, but I see BP is whining because the gulf oil spill so far has cost them 5 billion dollars and rising, - they shouldnt say too much, as I see their 2010 quartely profit was 6 billion dollars - 6 billion dollars profit in 4 months.....now theres a business to invest in.

 

 

Well soon they wont be getting anything when the oil runs out, so they gotta get as much as they can now. Still hate the bastards

[AndreZA]

Just as a matter of interest, is the Conti distributor for bicycle tyres part of the Continental group or is he / she an independant.?

 

I dont know, but I would imagine bicycle tyres is far too small a business to concern the Continental tyre group on a distribution basis, so I am going to assume they are independant, but, yeah, I dont know.?

 

He is an independent agent. A few month ago some mag interviewed him and Conti tyres is his only product. How can you make a living by selling one product? Easy, overcharge everybody.

[Shebeen]

Its a lengthy process.

 

Wasn't the result that the stores were found guilty and docked 10% of turnover? Is the process not over, or is there still a chance that the two instigators do jail time?

 

I would REALLY like to know where that money goes. it's been paid by cyclists, so can we build some communal singletrack pleees? incidentally I saw Tigerbrands CEO talk the other day, he said that surprisingly the pricefixing hardly dented Albany's business - consumer only cares about today's price.

[CarbonAddict]

they are basically double EU prices...someone is making mobey - esp since there is no duty applicable..so who is making the cash?

[TNOSE_E]

He is an independent agent. A few month ago some mag interviewed him and Conti tyres is his only product. How can you make a living by selling one product? Easy, overcharge everybody.

 

Interac are the conti agents. They also do motorcycle fork seals, Renthal products and chains along with some other goods.

[GrumpyOldGuy]

Wasn't the result that the stores were found guilty and docked 10% of turnover? Is the process not over, or is there still a chance that the two instigators do jail time?

 

I would REALLY like to know where that money goes. it's been paid by cyclists, so can we build some communal singletrack pleees? incidentally I saw Tigerbrands CEO talk the other day, he said that surprisingly the pricefixing hardly dented Albany's business - consumer only cares about today's price.

 

No the process isnt over yet, I havent really researched it to see the findings or the suggested fine, but in a nut shell the Competition Commission has referred their investigation and findings to the Competition tribunal, with a suggestion of costs (fines) which it appears is the standard 10% of annual turnover as you state.

 

This is standard procedure.

 

The Tribunal will / still have to hear argument from both sides and will then make a decision, which will be final.

 

I expect it will still take a fair while.

 

Yeah, Albany is a monster company, and the price fixing was minimal value, so it wouldnt have changed their bottom line much, but what will hurt is the fine levied, Tiger Brands has agreed to a specific value they will pay (I forget the amount now, but its millions) which is 10% of the bread manufacturing (baking) turnover, however the commission is argueing that the fine must encompass ALL of the bread manufacturing processes, including milling and grinding, which will raise the fine by millions more, so Yeah, its still with the tribunal and some wide awake advocates are making huge money.

[GrumpyOldGuy]

He is an independent agent. A few month ago some mag interviewed him and Conti tyres is his only product. How can you make a living by selling one product? Easy, overcharge everybody.

 

Ok Thanks, I didnt see the interview, but I imagined he would be an independant, the number of bicycle tyres and tubes sold here is so small it would never be interesting to the Continental group.