Is it illegal to enforce a price point?

Hi Lisa I hope this help, I know that you are not allowed to tell people what price they can sell products you give rights to sell. One of the reasons for this is price fixing. We have a free open market and people have the right to set retail prices.

But with that said, I am almost sure you can influence them by giving them a lic. to use your products and GUIDE them on the prices they are allowed to sell.

But the said thing is if someone wants to offer your PLR for a buck they can. Just take a look at ebay lol

But I am sure there is a Guru or two on here that can give you pointers on how to help GUIDE your clients that order PLR rights and resale rights and how to better enforce your lic.

Price fixing - Wikipedia, the free encyclopedia

good luck

Auggie

Thank you very much Auggie and Justin for posting.

I appreciate the article on price fixing, it helped.

I was already under the impression that it was illegal to enforce a price point when selling a product with resale rights.

However a suggested retail price would be OK.

I'll have to do some more research on the subject.
Again, I appreciate your help have a great day,
Lisa

As far as I know there is nothing illegal about selling licences with fixed prices associated with the resale rights. That's not price fixing. Price fixing is agreeing with competitors to keep prices high.

Your some what right Andy, but if you think about it, your resellers are competition and if you all agree to sell it at X price, then isn't that opening one self up for price fixing?

This is why every resell rights lic. that I have ever gotten had a suggested retail price and a PLEASE don't sell it for a buck agreement, but not sure on enforceable that is.

But I think if you have a system that your resellers have to accept payment via your payment processor and they get 100% of the commission, this will set the price that you want.

this is a way around it. But Andy might have a point not 100 sure

If you are selling in Europe, you cannot regulate the price at which your product sells. If you feel that your product would be devalued by being offered at a lower price, you must remain the sole source of supply and refuse to sell PLR licences.

Cartels are constantly being flushed out of the sewers and the retribution can be fierce although oil cartels seem to operate with impunity.

Andy's correct. It's your product and your license. You have every right to set a value for your product in the license or else your competitor could simply buy a license then flood the market with your product for free.

Theoretically, that might not be a bad thing for the exposure it could bring you but that's a different point altogether.

If a person doesn't like the valuation terms of your license, it does not prevent them from creating a similar product and selling it at whatever price they want.

So, if I were you, I would, without hesitation, tell people in the license that they were not allowed to give the product away nor sell it for less than $X....

That is not restricting free trade or price setting. It's protecting the value of your product which you are licensing to others so that both you and they can make money... not so they can wreck the value of your creation and put you out of business.

Eric

Ok here is live proof from a person that is well know for PLR rights and resell rightsJeremy Burns.

THIS IS NOT AN AFFILIATE LINK
Web Site Agreement

We all know the source code goldmine sales, above are Jeremy's terms. In the 2nd paragraph here is his opening line

"We can not legally set prices for these products, we can only suggest them......"

Now as everyone above agrees there are a ton of ways to strongly suggest or Limit the people that resell your products. And we all know that if there are stupid people out there that take a great product and kill the value, what we have to do is offer a better service to make our price more of a value

If a reseller is offering something below value, I can almost say that his/her support is not good, simply because they are not making any money from each sale so why put more time into that needs to.

As with anything the best advise is speak to a lawyer or someone in your area to ensure that you are following the right rules.

Good luck all

Auggie

If you give them the product to pass on to their customers then they can set the price to whatever they want and there isn't much legally you can do. You can't force them to sell for a specific price if they control the payment and delivery platform.

If you are worried about devaluing your product then the best route would probably be to set people up as affiliates and use something like SMP or RAP that allows for instant 100% commissions. This way you can control the sales and delivery process but your resellers get the full product price.

it definitely is legal. Many types of food say the price of their product right on the box, thereby forcing retailers to sell for that...or less with a sale - but never higher.

Beef jerky teaches me so many lessons.

Price fixing and the law | Business Link

http://business-law.freeadvice.com/t...ice_fixing.htm


Kim

The general rule provides that a vendor may not in combination with another vendor agree to set a certain price thereby creating a fixed price within a certain market.

You are the vendor. The people who bought the product are customers - not vendors.

From the looks of things I stand corrected. Thanks for the input guys and girls

If you are afraid of your own product being devalued, why even offer Master Resale Rights or PLR? People are going to price it how they choose, that's for sure.

I would say, only release PLR for products you do not intend to sell yourself or you are no longer going to sell.

Here's my understanding of price fixing:

- "Vendor" is the person who creates the product
- "Resellers" are the people who buy rights to resell the product

Now in this example, let's say 3 people bought rights to sell the product, and so we have 3 Resellers.

The Vendor says "This product is worth $30".

Pricing fixing is if those 3 Resellers got together and agreed to sell the product for at least $100.

"Price fixing" has nothing to do with the vendor-reseller relationship, it's only about the reseller-reseller-reseller relationship.

Does that make sense?


So how do vendors in the real world make sure their products aren't undervalued? It's all about profit.

Resellers buy the product at a certain price, and then put their profit on top of it. Their buy price effectively sets the minimum sales price, because to sell under their buy price will send them broke.

This becomes very different with digital products, because there isn't a cost involved in each unit. You just buy a "blanket licences" to effectively reproduce that one product.

This effectively gives a resller the flexability to devalue the product instantly (and sqaush other resellers' investments) by selling it for $0.01.

Is it legal to set minimum sales prices?

It turns out it probably IS legal, since 2007 (in the US, anyway):

http://www.nytimes.com/2007/06/29/bu...5867.html?_r=1

cheers
Sam

I'm not an expert at law by any means but I do know that manufacturers who sell to distributors or wholesalers will often set a limit below which people can't sell the product. If they didn't, the re-sellers would cannibalize each other and end up tarnishing the brand.