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Old 07-13-2009, 05:03 AM   #11
Eric R Cohen
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Re: No choice but to form a partnership

Quote:
Originally Posted by James lee View Post
if you guys want to work together, why not agree on keeping the price the same between the 2 gyms.
From Wikipedia:
Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. The principal feature is any agreement on price, whether expressed or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.

Price fixing requires a conspiracy between two or more sellers; the purpose is to coordinate pricing for mutual benefit at the expense of buyers. Sellers might agree to sell at a common target price; set a common "minimum" price; buy the product from a supplier at a specified "maximum" price; adhere to a price book or list price; engage in cooperative price advertising; standardize financial credit terms offered to purchasers; use uniform trade-in allowances; limit discounts; discontinue a free service or fix the price of one component of an overall service; adhere uniformly to previously-announced prices and terms of sale; establish uniform costs and markups; impose mandatory surcharges; purposefully reduce output or sales in order to charge higher prices; or purposefully share or "pool" markets, territories, or customers.

Generally, price fixing is illegal, but it may nevertheless be tolerated or even sanctioned by some governments at various times, particularly among those whose countries are developing economies. See also Collusion.
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Old 07-13-2009, 05:11 AM   #12
Kevin Thomas
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Re: No choice but to form a partnership

To further what people have said regarding a partnership: What makes you think that even a "successful" partnership or price fixing agreement with this other box will stop a third (or fourth or fifth) box from opening nearby? What would you do then?

Also, did things really change so much for you in 2 days? On the 9th you indicated that your box had a good setup and but needed some help covering startup costs. On the 11th you indicated that your box is in an pricing war that you don't think you can survive. You need to decide what the real issue with your business is. Is it a temporary cash flow problem, or is it a problem with not enough demand for your services.

Last edited by Kevin Thomas : 07-13-2009 at 05:18 AM.
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Old 07-13-2009, 09:24 AM   #13
Jamie J. Skibicki
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Re: No choice but to form a partnership

A far as the two of you agreeing to a price, isn't price fixing illegal?
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Old 07-14-2009, 12:47 PM   #14
Rolando Ezequiel Martinez
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Re: No choice but to form a partnership

If you combine yourselfs then it won't be two failures - it will be ONE EPIC FAILURE.
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Old 07-14-2009, 01:14 PM   #15
Sam Ser
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Re: No choice but to form a partnership

there's a lot of "DON'T DO IT!" advice here.

the OP needs more constructive ideas.
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