Did BRS violate antitrust laws?

[BroccoliFarmer]

I dont know...call me sour grapes...but last week's blow out sale of 40% of the EcoTech G5 Radions has really got me wondering. BRS claims that Ecotech falls under the MAP rules yet surprisingly enough, they had a 40% discount running whereas no other vendors did, even though they had them in stock. Due to the business relationship between Ecotech and BRS, are they unfairly undermining other businesses through a two tiered pricing methodology by only allowing BRS to advertise at lower than map pricing which other vendors were bound to honor?

Does a Minimum Advertised Price (MAP) Policy Violate the Antitrust Laws?

Author: Jarod Bona We see many antitrust issues in the distribution world—and from all business perspectives: supplier, wholesale distributor, authorized retailer, and unauthorized retailer, ...

www.theantitrustattorney.com

Meh..just me debating minutia of the shady business practices in a cut throat retail environment.

 

[Lost in the Sauce]

Interesting read. Thanks.

 

[A_Blind_Reefer]

I did see that sale but did not pay attention to other vendors. I will say that when they had the discount on apex gear around Black Friday every other retailer was offering the same discount. I noticed as some items were out of stock and I shopped other vendors. I believe the relationship between brs and Ecotech is the same with brs and Neptune. I’m wondering how many vendors still have Gen 4/5 stock on hand

 

[BroccoliFarmer]

I did see that sale but did not pay attention to other vendors. I will say that when they had the discount on apex gear around Black Friday every other retailer was offering the same discount. I noticed as some items were out of stock and I shopped other vendors. I believe the relationship between brs and Ecotech is the same with brs and Neptune. I’m wondering how many vendors still have Gen 4/5 stock on hand

There were a few. Once I saw that BRS sold out, right after i debated on to buy or not, no one else had the sales price for their instock units.

 

[BroccoliFarmer]

Self edit for incorrect info.

 

[t5Nitro]

The above is linked to the G6 model and not the previously listed sale on the G5 units.

Coralvue ran sales on the XR30 units the same afternoon although I dont think this was a universal sale at online vendors.

 

[Lbrdsoxfan]

Self edit for incorrect info.

I subscribe to PA's email, they would of posted that up.

The 40% off was BRS only AFAIK, and if so thats shady.

EDIT... After reading more (it's fundamental) it's about g5 models. Prolly sale to stock on hand. Thus meh.

EDIT #2... I'd prolly be interested @ 40% off!

 

[A_Blind_Reefer]

There were a few. Once I saw that BRS sold out, right after i debated on to buy or not, no one else had the sales price for their instock units.

That’s a fine line to walk and we’ve been wondering how it would all work out from the beginning of all of this involvement. I can’t believe that they would willfully have violated any laws in this regard though. Maybe there just wasn’t enough notice for people to update pricing on the web? Just giving them the benefit of doubt.

 

[Duffer]

I did see that sale but did not pay attention to other vendors. I will say that when they had the discount on apex gear around Black Friday every other retailer was offering the same discount. I noticed as some items were out of stock and I shopped other vendors. I believe the relationship between brs and Ecotech is the same with brs and Neptune. I’m wondering how many vendors still have Gen 4/5 stock on hand

The relationship is they are all owned by Bertram Capital

 

[Sean Clark]

I don't know about the legality of it all but 40% off sound about almost reasonable for such a fixture from a business that has no business manufacturing lights.

 

[Reign1]

Yeah as someone said same owner.. too bad I missed that sale though ..

 

[tsharpe291]

Interesting, my buddy that works at my lfs told me they were asked to send back all of their g5 stock to be replaced with g6, so where did all the G5’s end up? Things that make you

 

[BroccoliFarmer]

Interesting, my buddy that works at my lfs told me they were asked to send back all of their g5 stock to be replaced with g6, so where did all the G5’s end up? Things that make you

I was talking to my LFS and they indicated that they cannot get neptune equipment. Seems like a certain company is hording the goodies. Who could have saw this coming?

 

[YOYOYOReefer]

If your question is does MAP pricing break the law ( US antitrust laws ) answer is no.

Now did BRS violate thier MAP agreement with their Supplier? Yes, but is it illegal, no.
if its was not such a monopoly thier supplier would cut them off , but not likely in this case.

 

[BroccoliFarmer]

If your question is does MAP pricing break the law ( US antitrust laws ) answer is no.

Now did BRS violate thier MAP agreement with their Supplier? Yes, but is it illegal, no.
if its was not such a monopoly thier supplier would cut them off , but not likely in this case.

That is why this is such a problem. they are the supplier. Beltram capital owns BRS, EcoTech, Neptune. They can cut off anyone else..but they can offer deals to themselves that no one else can access.

 

[Koigula]

You are questions are making assumptions that may not be correct.

Ecotech / BRS is more than a importer/vendor relationship. Ever notice that they sponsor content creators together. The content is still great but come on!!

The model is fast fast planned obsolescence. It can not happen with back stock and new hobbyists not buying goods needing rapid replacements.

 

[YOYOYOReefer]

That is why this is such a problem. they are the supplier. Beltram capital owns BRS, EcoTech, Neptune. They can cut off anyone else..but they can offer deals to themselves that no one else can access.

its not really a problem for the consumers.. if we get the best price then we win, i know i would pick up a few more G5s at discount if i would have known about thier sale that day.....

 

[BroccoliFarmer]

its not really a problem for the consumers.. if we get the best price then we win, i know i would pick up a few more G5s at discount if i would have known about thier sale that day.....

In the short-term, yes. Unfortunately, this type of behavior is well documented. Kill off competition through lower margins that small players cannot survive on. Once the competition is gone, prices go back up. Competition is the only thing that keeps prices in check in the long run. How many sales did that promotion take away from the little guys? How many people bought BRS stuff in hopes of a give away that took away sales from SWA or PA? How many of these deals are only available to BRS because of their size or their related corporations.

Not trying to make this about 'the man', but there are real issues when dominant players make it impossible to compete. All but guarantee one of the other 'big boys' goes away in the next year or so.

Edit: I would add another thing to this. Imagine if the avenues for the next generation equipment cant take hold because it competes directly with BRS and they are the dominant provider for reefing gear. Think of how much those radions cost today. What if the only real options you get have to be BRS approved or they dont see the light of day? Will radions ever get competition to keep their prices in check or have them continue in investing in innovation? I know these are macro level concepts that most people can shrug off and say 'not my problem', but they are very real.

 

[Koigula]

In the short-term, yes. Unfortunately, this type of behavior is well documented. Kill off competition through lower margins that small players cannot survive on. Once the competition is gone, prices go back up. Competition is the only thing that keeps prices in check in the long run. How many sales did that promotion take away from the little guys? How many people bought BRS stuff in hopes of a give away that took away sales from SWA or PA? How many of these deals are only available to BRS because of their size or their related corporations.

Not trying to make this about 'the man', but there are real issues when dominant players make it impossible to compete. All but guarantee one of the other 'big boys' goes away in the next year or so.

Edit: I would add another thing to this. Imagine if the avenues for the next generation equipment cant take hold because it competes directly with BRS and they are the dominant provider for reefing gear. Think of how much those radions cost today. What if the only real options you get have to be BRS approved or they dont see the light of day? Will radions ever get competition to keep their prices in check or have them continue in investing in innovation? I know these are macro level concepts that most people can shrug off and say 'not my problem', but they are very real.

I would say you are 100% correct on the consumer transactional level.

However LEDs are not amazing science or technology. They are a sum of parts being enclosures, reflectors, led chips, drivers and heat sinks. Consumers should demand replacement parts, not alternate shipments from China. I went back to t5s seeing this coming. I have 4 or 5 year supply, which is a lifetime in a hobby.

 

[BroccoliFarmer]

I would say you are 100% correct on the consumer transactional level.

However LEDs are not amazing science or technology. They are a sum of parts being enclosures, reflectors, led chips, drivers and heat sinks. Consumers should demand replacement parts, not alternate shipments from China. I went back to t5s seeing this coming. I have 4 or 5 year supply, which is a lifetime in a hobby.

Agree on this..but the replacement part piece is probably not coming. Retailors realize they have higher margins by selling things that break fast and need replacement. Think about appliances. You bought something from the 90s and they are still running. Something from last decade you will be lucky for 4 years without a dryer catching on first because of a bad part (literally happened to me 3 weeks ago). Costs you 500 to fix something when you can buy new for 700.