VBeebles: Predatory pricing from Reece? My experience is that...

VBeebles:

Predatory pricing from Reece? My experience is that Reece are not necessarily the lowest priced supplier, but rather pride themselves on superior service / advice. Who have they forced out off business by very low prices? Not Tradelink, their woes come more from an inability to compete on product range, style and service as far as I can tell. Wouldn't the 'exclusive' products supplied by Reece be at higher price points anyway?

But if you are concerned about predatory pricing, it may be of interest focussing on recent comments by the ACCC Chairman with regard to Amazon's entry into the local market. It looks like they have carte blanche from the regulator to go as hard as they like on price irrespective of the impact on the local incumbents!

From AFR 3/11/2017

The competition watchdog will allow Amazon to undercut local businesses with ultra-low prices when it enters the Australian market as early as this month in a blow to retailers hoping the regulator would intervene to protect them from the $US530 billion giant.
Australian Competition and Consumer Commission chairman Rod Sims told AFR Weekend that Amazon will be able to set low prices to win business without breaching misuse of market provisions in the competition laws.
"In terms of misuse of market power, if you open a store in a new town and you set a common price point, you are going to lose money initially if you don't have scale," Mr Sims said. "Eventually if you get your business plan right you will make money at that price point, that is in no way illegal."


Read more: http://www.copyright link/business/retail/amazon-gets-green-light-from-accc-chairman-rod-sims-20171102-gzdkuk#ixzz4zIrdv4WZ