MPH, Popular, Times and Harris bookstores have decided to withdraw the Harry Potter and the Deathly Hallows novel from their shelves in protest against Tesco and Carrefour’s move in selling the novel at a much cheaper price of RM69.90. The retail price of the book is RM109.90.

…

Asked if their decision was to pressure the book’s distributor, Penguin Books, to remove the books from the hypermarkets, she said: “It’s not fair to allow hypermarkets to sell such a popular book when they are not in the book business.

…

More here.

I find this Harry Potter saga between bookstore giants and the hypermarkets amusing…and even shocking. Having been part of the publishing line with some knowledge of trade practices law, I’m appalled to see that bookstore giants have the audacity to demand that a price be fixed for a certain non-controlled item like a book. (Would it even had been an issue if it was some other non-selling title like (insert any book title here)?)

If a publisher or supplier demands that their customer (Mr Retailer) place a fix price (hence called a ceiling price), that demand contravenes the practice of trade practices and the trade practices act (if it does exist in Malaysia). Part and parcel of being in a free market is this: you will have competition and you will have people who will sell the same items at a lower price. This is a free market. If hypermarkets want to fix a lower price and make a loss OR not, that is their given right as a participant in the free market. A publisher’s duty as a supplier is just that: is to supply the book at the best price possible to ensure fair pricing FOR ALL in the market.

Whenever a product is grossly overpriced, it means that the cost of advertising and promotion is being passed onto the customer. Never mind the percentage of profit or the overhead cost or just paying for the label. In other words, we are being taken for a ride when we choose to purchase something more expensive when there is a cheaper alternative.

Crying foul is the part where I find amusing because at the end of the day, bookstore giants STILL make a killing with these books. At RM100 per book per person and if more than 100 people buy the title, which they will since it’s Harry Potter we’re talking about, well…you do the math.

This isn’t really a case of price wars, people…it is a case of being caught with your hand in the cookie jar – for “overpricing” your product. Do watch out! Not every consumer out there is stupid. I reckon I’ll just wait for the hype to die down and make a trip to my good old hypermarket (or whichever that offers me a BETTER price).