Tone wrote:I remember drooling over a Daphne Blue Strat in the window of Kitchens music shop in Leeds around late 62/early 63 and the price tag of 155 guineas has always stuck in my mind, Were dealers at that time obliged to sell at Fender's (or the importer's) RRP or were they allowed to discount?
Tony
There has never been a law to the effect that the supplier had a legal right to dictate the retail price, but before early 1964, distribution agreements, for everything from baked beans to new cars, taking in musical instruments along the way, invariably included a clause to the effect that the retailer must observe retail price maintenance (RPM) and must not attempt to undercut any other retailer supplied by the same distributor. Breach of that contract would lead to supplies being terminated and perhaps to penal clauses as well. It was "take it or leave it".
In early 1964, the UK government's Board of Trade (the relevant minister being Edward Heath) sponsored legislation outlawing such terms of wholesale supply and disabling them for existing contracts.
This had various effects, not all of which were observed immediately. The most obvious was that supermarkets (which had been around for a while in the High Street) were set free to set their own lower prices. Before 1964, the likes of Tesco had had to sell everything at the same price as the corner grocer. The change led to purpose-built supermarkets and to a complete shift in grocery retail, though this obviously took a few years.
Some wholesalers and suppliers tried to challenge the new law and to devise new sales contracts which they imagined would not be subject to it. EMI was one of them - and that is why their 45rpm singles from around 1964 often have the "Sold subject to Resale Price Maintenance..." imprint in block capitals on the push-out centre of the disc.
But it didn't work.
Guitars were discounted in the West End of London from some time in 1971 onward. Before that, you had to pay the catalogue price, unless the retailer was released from it by the manufacturer in order to dispose of end-of-line stock, etc. Eventually, the discounting spread around the rest of the country. It had its own effect on the musical instrument retail industry.


