PC World rip off merchants

[expat]

...
This is how monopoly of Dixons directly affects me even though I don't shop there!

No, that is not logical. If you don't shop there, it's not a monopoly.

It's a market position that doesn't please you.
It's the place where most people shop even if they'd be better not to, which you don't like.
It's present in every town, and in most towns no other seller sets up to sell the same stuff cheaper, which annoys you.

But it's not a monopoly. It's just a success that you don't like. That's not really what government regulation is there to prevent. You're not related to Mr Putin are you?

[AtW]

No, that is not logical. If you don't shop there, it's not a monopoly.

I don't shop in many places and it does not stop making some of them mopolies they are.

The test for whether something is a monopoly or not is not my shopping habits, and not even potential availability of competitors - there were companies trying to compete with BT, so technically there were alternative on offer, however because BT occupied such a unique monopolistic position it was simply not possible for other suppliers to take any meaningful market share.

This is exactly the case with Dixons in retail space.

No need to link this question to personalities, like my preferences - I don't shop there, I buy either online or on local computer fair, or in this instance in some obscure computer shop.

I would however prefer to buy in local place like PC World if it had reasonable prices, however it does not have such prices - ridiculous 5000%+ margins on cables can only be possible in a monopolistic environment that is the case on high street.

[expat]

The test for whether something is a monopoly or not is not my shopping habits, and not even potential availability of competitors

sorry, that is exactly the test for a monopoly. Competitors I mean, not AtW shopping habits. And certainly not your or anyone else's displeasure at price levels.

Hig prices are not a good indication of a monopoly. Whether the price is competitive depends on whether you take into account all the factors that buyers take into account, even implicitly.

And markups have nothing to do with it.

Ex: bus down the road, cheap. Taxi, costs a lot more. Rip-off? No, there is more to the service than the destination.

Ex: 1 small cable, cheap in the shop you like, costly in PC World. Rip-off? No, there is more to it than the object itself.

I don't personally know what it is that makes the more expensive PC World cable the better purchase for more buyers, but I believe that's their business. I don't believe that I know better, and I don't believe you do either.

[AtW]

sorry, that is exactly the test for a monopoly. Competitors I mean, not AtW shopping habits. And certainly not your or anyone else's displeasure at price levels.

There are no competitors on the high-street, go on name me any similar shop like Dixons/PC World? Say for DYI there are clear competitiors - HomeBase, B&Q and someone else I can't mind. But there ain't any for Dixons.

Ex: bus down the road, cheap. Taxi, costs a lot more. Rip-off? No, there is more to the service than the destination.

Guess what dude? Buses are a monopoly allowed by the local Govt and their prices are regulated!!! I believe similar goes for taxies! Nice example

[Skeptical]

AtW, in no way Dixons or PC World is a monopoly. The only reason there isn't much competition is because of the internet. Noone can make any profit selling this stuff because you can buy it cheaper on the internet where the seller's costs are 10 times lower.

[AtW]

AtW, in no way Dixons or PC World is a monopoly.

Why suppliers of IT stuff have to setup separate SKUs for the same products to be sold to Dixons at lower prices than to anybody else?

[Lucifer Box]

Guess what dude? Buses are a monopoly allowed by the local Govt and their prices are regulated!!!

That is complete arse. Outside of London the local bus market was deregulated in the early 1990s.

But anyway, you have won me over with your superior debating skills. Only the goverment has the objectivity and fairmindedness to centrally fix the price of:

1. Plumbers
2. Lawyers
3. Electronic components.

Oh, and presumably anything else you think is too expensive for you.

[AtW]

That is complete arse. Outside of London the local bus market was deregulated in the early 1990s.

Travel West Midlands is the company that was assigned local monopoly to transport people around West Midlands - they do not have right to change their prices at will as its regulated.

Taxies are also similarly regulated - I believe that their fees (at least for Hackney carriages) are fixed by the council and they can't charge more just like this - too high prices must I add, but at least they are controlled.

I do not propose to fix prices or break up entities that are competitive - good example is online sellers of IT stuff - there is a high degree of competition which is obvious from much more competitive prices that do not vary much. This means a single supplier does not make excessive margin just because they were in position to do so - like Dixons who have no real competition in the high street market.

[Skeptical]

Main Entry: mo·nop·o·ly
1 : exclusive ownership through legal privilege, command of supply, or concerted action
2 : exclusive possession or control
3 : a commodity controlled by one party
4 : one that has a monopoly

There is no legal privilege, there is no command of supply and there is no concerted action.

The prices, including the prices at which suppliers sell goods to Dixons, are regulated by the free market.

[AtW]

there is no command of supply

No command of supply? Did you read what I said - suppliers often have to create special SKU (Stock Keeping Unit) just for Dixons because they demand such drastically cheaper prices than any other purchaser of same goods. How is this not command of supply?