Pricing fixing

Carl Root rootfamily@erols.com
Sat, 28 Nov 1998 09:05:47 -0400


Two technicians are at a bar . . . .  (ha, ha, ha.)

     "Really!? You're only charging $85? I've been charging $100 for a
year!"
     "Gee, that's a lot! I'm surprised they're willing to pay it. "
     "I give myself a cost of living raise every year just to keep even.
That way, the increases are small.  I get an objection from one or two
people each time.  No big deal."
     Well I sure have noticed that other home services have gone up. 
Just the minimum service charge is close to my fee.  When they have to
do an hour's work, it goes way beyond what I charge. 
     "I figure a tuning fee is about the same as a good pair of shoes. 
In a way, I've been charging the same for twenty years.  The value of
the dollar just keeps changing."

If both technicians raise their rates next week, is that price fixing? 
They were probably following their usual practice of regular increases,
just like every other service.  The problem is, to everyone else at the
bar who knew they were talking about prices, all they know is the cost
of the service just went up, and if they're the only two technicians in
town, it sure looks like price collusion.

It's all in the appearances.

Carl Root, RPT



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