Two-Tier Pricing

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Lee Williams

Member
4 May 2020
2
0
1
Hi, is it permissible for a wholesaler to charge online retailers a 20% surcharge above what is charged to a Bricks and Mortar store?
Especially during a pandemic when pretty well everyone who can go online, has. Thanks
 

JazKaz

Well-Known Member
11 April 2020
37
1
124
In my opinion, businesses including wholesalers have the right to decide how to set prices and reasonable surcharge levels. They also must adhere to Australian consumer law in setting their prices so they are not predatory or uncompetitive.

I might suggest you see this website:


It talks about pricing surcharges and payment surcharges and about how businesses must not excessively surcharge its customers.
In this case, retailers would be customers.
 

JazKaz

Well-Known Member
11 April 2020
37
1
124
Unfortunately that link I sent did not work out so well. Check the full webpage not just the section it brings you to
 

Lee Williams

Member
4 May 2020
2
0
1
thanks - yes, the link is more for EFTPOS charges. I'm talking about one price list for bricks and mortar stores and a 20% higher charge for business that are online. Seems like profiteering when we are in the middle of a pandemic and running a shop online is the only option for many,
 

JazKaz

Well-Known Member
11 April 2020
37
1
124
True that does seem a bit unfair. It’s the wholesalers choice I guess.

I think it could be permissible in that a wholesaler buys in bulk, then sells the stock to retailers at a charge. Brick and mortar stores hold the inventory. Online retailers might not. The wholesaler might have a deal where they possibly hold the stock for them as online retailers then connect buyers to stock and sell. Not sure if this happens in practice, but essentially this would explain how it leads to a higher price for holding stock charged to retailers.