Category Archives: Christian Music

Advance Notice of Formal Complaint to the Office of Fair Trading about Anti-Competitive and Unfair Trading Practices by Kingsway Communications

Posted on July 28, 2010 by | 10 Comments

IN MY ORIGINAL POST this morning I drew a comparison between the £13.48 preorder offer featured in David Keen’s post The Last Instrumental Worship Album…Ever! and Kingsway’s out now offer on their The Best Instrumental Worship Album…Ever! of £12.99 compared to their RRP of £16.99.

It has since been brought to my attention that the £13.48 pre-order offer originated from eden.co.uk, not Kingsway. I have therefore withdrawn my original post. If anyone knows what Kingsway’s pre-order offer was, please leave a comment or contact me directly.

The basic issue of undermining trade elsewhere and misleading customers by advertising products at RRPs that the publisher/producer never in fact charges remains the same, however, and so my intention to notify the Office of Fair Trading of this ongoing situation remains unchanged.

Formal notice, John: sort this folly out — today, please — or, as advised to you and others by email this morning, I shall be registering a formal complaint with the OFT. Over ten weeks have passed since I first raised concerns here; a full week has passed since July 21st, the date by which you indicated your intention to address the matter: more than sufficient time to straighten things out but with no evidence of any action taken.

Please note that this is neither a bluff nor a threat: more a case of weary resignation. I do not regard initiating formal proceedings against a Christian organisation as something to be undertaken lightly. I remain hopeful that Kingsway will acknowledge the error of their ways and take appropriate remedial action before such intervention becomes necessary.

Anyone who’d care to join me in finalising and submitting a formal complaint to the OFT, please get in touch. Thank you.

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Kingsway: no meeting with John Paculabo and “an unwholesome witch hunt”?

Posted on July 21, 2010 by | 7 Comments

TODAY, Wednesday 21st July 2010, is the date suggested by John Paculabo for a meeting in London at which he proposed to address the concerns of the trade over Kingsway’s pricing practices and to further enlighten us about their “aspirations and many other issues and their possible impact”:

I am more than willing to address the issues raised in the blog in recent weeks with regards to Kingsway, pricing, internet etc, and I am more than willing to share with you our aspirations and many other issues and their possible impact including a generation that expects; no demands that music is free!

However I am not willing to commit discussion to a blog where those with any axe to grind can snipe from the cover of their office, but face to face is different. I am more than happy to meet in London or anywhere else for that matter at a suitable location, and with an independent chairman. (Board meetings and Charity work means that I would not be available until the middle of July), so let’s set a date of Wednesday July 21st at 11am, venue to be decided.

To the best of my knowledge, however, John has not followed through on that offer and nor has he come forward with any other way of communicating with us on these issues. I’m aware of some ongoing correspondence between Kingsway and a number of individual trade customers, but as far as I know none has resulted in any resolution of the specific concerns raised here: at best, it seems to be case of, “We hear what you say,” with a subtext of and we don’t give two hoots.

This observation is not intended in any way to denigrate Kingway’s reps or customer services staff who have, in my own experience and according to others’ reports, remained unfailingly courteous and helpful: I am sure that they share our concerns and are no doubt frustrated by what appear to be the intransigent attitudes from higher up within the company, but they remain powerless to respond. That the company’s senior management has allowed this situation to drag on for so long strikes me as both astonishing and very sad, and it reflects very poorly upon an organisation that practices excellence in so many other areas.

On the basis of his responses thus far, John’s claim to be “more than willing to address the issues raised” appears to be if not actually disingenuous, then what, exactly? Nonetheless, John, if you’re reading, my invitation to you to contribute a Guest Post remains open: a blank canvas upon which you can expound your point of view without editorial input beyond a brief introduction; you have my email address (I’m sure you wouldn’t, John, but no sniping or axe-grinding, please).

An Unwholesome Witch Hunt?

Last week I made so bold as to suggest that Kingsway are not the only Christian music supplier out there: there are alternatives. Is such a suggestion unreasonable or irresponsible? You, gentle reader, must decide, but Ian responded as follows:

I think there is an unwholesome witch hunt of Kingsway going on here that is unedifying and quite nasty.

I confess that this leaves me baffled. Unwholesome? Witch hunt? Unedifying? Quite nasty? I’d be immensely grateful if someone could spell out the point at which my posts or these discussions have degenerated to that point, please, because I truly can’t see it. I guess, on reflection, my knockabout post — Weekend Knockabout: The Ultimate Christian Product Awards — was a tad overdone, but it was clearly flagged as humour, highlighting some rather crass marketing. I did, however, feel that I had set the record straight with my subsequent post, In Defence of Kingsway, in which I invited those who wished to sing Kingsway’s praises to do so freely: none did.

A friend elsewhere has this as his forum signature: “The facts are friendly.” Unfortunately in Kingsway’s case the facts are rather more messy than friendly — but neither I nor anyone else here, to the best of my knowledge, has manipulated the truth or promulgated any falsehoods about Kingsway: again, I simply ask anyone who can identify any inaccurate reporting or misrepresentation to do so, please, so that I can straighten things out.

Otherwise I stand with Melanie, who responded to Ian as follows:

I’m sorry you think this is a witch hunt Ian. I don’t think this is a Witch Hunt. I don’t think anyone wants to burn Kingsway nor demonise them, in fact those on this blog have continually expressed their desire to work with and to be in communion with them, but they are making it hard to do so currently in a way that others in the same industry just are not.

Calling a company to question over an action they are undertaking, an action not undertaken by their own parent company David C. Cook, is not to my mind witch hunting.

If the Kendrick example cited in my original post (examined more closely in Truth, Lies and CD Prices: Taking a Closer Look at Kingsway’s Price Comparisons) was a one-off then, yes, this entire debate would be an exercise in futility, although even then I think it would be a far cry from the “witch hunt” and nastiness Ian alleges.

Two more examples should, I trust, be sufficient to make the point. In my Truth, Lies and CD Prices post I cited the example of You Have Shown Us: Songs of Justice, Mercy and Humility advertised at pre-order price, £9.99; RRP, £12.99:

You Have Shown Us: Songs of Justice, Mercy and Humility: Pre-order price, £9.99; RRP, £12.99

You Have Shown Us - Songs of Justice, Mercy and Humility - Pre-order price, £9.99; RRP, £12.99

I asked:

Will customers placing ‘pre-orders’ for this item really save £3.00, 23% off the advertised RRP? Or will the price simply go up by £1.00 as per the Kendrick album? Will Kingsway rise to the Micah Challenge’s call for trade justice in their own business practices?

And what we find in practice is:

You Have Shown Us - Songs of Justice, Mercy and Humility - now available, Kingsway price £10.99; Kingsway RRP, £12.99

You Have Shown Us - Songs of Justice, Mercy and Humility - now available, Kingsway price £10.99; Kingsway RRP, £12.99 (screenshot taken 29/06/2010)

That screenshot was taken just 8 days after the advertised release date of 21/06/2010: the product went on sale straightaway at £2.00 below the so-called RRP; and as I prepare this post, the same offer remains online at kingswayshop.com. Were customers placing pre-orders at £9.99 in anticipation of a £3.00 (23%) saving misled? You decide.

Next up, the Ton of Worship 2 CD collection. There’s no doubt about it, this collection represents superb value for money and I applaud Kingsway’s initiative in making the Ton of Worship series available. But once again we find a pre-order offer that does not live up to the promise:

Kingsway Ton of Worship 2 - pre-order offer: £8.99, save £1

Kingsway Ton of Worship 2 - pre-order offer: £8.99, save £1 (screenshot 08/06/2010)

But what do we find on product release? Exactly the same offer, still available as I write:

kingswayshop.com - Ton of Worship 2 - out now, £8.99 save £1

Kingsway Ton of Worship 2 - out now, £8.99 save £1 (screenshot 28/06/2010)

But was this not a pre-order offer? Were customers who pre-ordered in anticipation of a £1 saving misled? How can so-called RRPs hold any validity when a producer never sells their products at those prices, even for a nominal period of time? And lest anyone should protest, “But it’s only £1″ — when was the last time you were shortchanged or overcharged by £1 and didn’t object?

The facts are indeed messy as Kingsway seem to arrogate to themselves the right to ignore the pricing guidelines that most other retailers — Christian or otherwise — assiduously abide by. If simple fact-finding and highlighting of bad practice is “an unwholesome witch hunt” then I plead guilty as charged — but in witch hunts is it not normally the weak and defenceless being hunted down by a baying mob of inquisitors? Kingsway are neither weak nor defenceless, and we who wish to trade with them are not a baying mob seeking their destruction. No, Ian: whilst I appreciate your raising these concerns, you have completely misread the situation.

The reality is rather — as referred to by Melanie — summed up superbly by John Duncan as follows:

… the point at issue here is whether Kingwsay are negotiating [the discussion about the future of bricks and mortar shops] with honesty and integrity. If Kingsway had simply shrugged their collective shoulders and said that the retail trade is dead in the water, and that they were focussing all their efforts onto the ‘online customer’, I am sure we would all be very upset but at least we would know where we stood. However in fact Kingsway are claiming to be supporting the retail trade, and at this time are wanting us to sign up to their partnership deals.

In my opinion the point Phil and others are making here, is that the practice of using an RRP that is simply a fiction, in terms of what they themselves actually charge, is an unfair and fundamentally dishonest pratice and discriminates heavily against the retail trade. I agree with the point they are making. It is this perceived dishonesty at the heart of the way Kingsway are trying to negotiate the change in business model that is causing this highly charged debate.

Highly charged? Perhaps. An unwholesome witch hunt? By no means: Kingsway are emphatically not the enemy — but fundamentally dishonest business practices and Kingsway’s apparent willingness to give in to them most certainly are; and whilst we may not be our brothers’ keepers, we certainly do have a duty of care to not stand idly by and allow Kingsway to suicidally sink themselves in this mire unprotested.

John referred to the “possible impact” of Kingsway’s “aspirations”. I suggest that he would do well to reflect upon the actual impact their current business practices are having upon their trading partners: we too, John, are your customers: do you truly despise us and our concerns?

My hope and prayer is that if John Paculabo lacks the wherewithal to deal with this situation himself then perhaps someone from David C Cook will show sufficient grace to step in and give him whatever support is needed to take control of Kingsway, their wayward adoptive child.

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Is there an alternative to Kingsway?

Posted on July 11, 2010 by | 18 Comments

This is the question one commenter asked last month in response to Kingsway’s failure to address trade customers’ concerns about being effectively priced out of the market by their practice of comparing their online shop prices to their own RRPs. Astonishingly, as I prepare this post more than a month later, neither Kingsway nor David C Cook have yet shown the courtesy of offering a constructive response. No doubt if there have been any changes since, someone will let us us know via the comments.

To answer the question, however: both yes and no: no, in that Kingsway are the sole supplier of their own products; but yes, in that there are plenty of other artists out there on other labels — Kingsway do not have a monopoly on good Christian music.

Some other Christian music suppliers that come immediately to mind are:

  • Elevation: Own label products including ICC Recordings from events such as Greenbelt, Keswick, New Wine and Spring Harvest. Distributors for Vineyard Records UK. Carriage-free shipping by 2nd class post standard, 1st class available for a “nominal fee”; normally same day despatch on orders placed by 11am.
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As for Kingsway product itself, until Kingsway are inclined to put their house in order and are able to bring their ordering process up to speed, in real terms we’re better off ordering via STL anyway: with STL we know that if a product is in stock, it will be normally be shipped same day if ordered online before 4pm (2.30pm for telephone, fax or email), and if you’ve signed up to STL’s Retail Partnership programme you have the extra advantages that come with that.

In short, then, there is no shortage of alternatives to Kingsway, and it makes much more sense as a long term strategy to trade with companies that want to work with us than with a company that seems by its deeds if not by its words to have set itself against us.

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Kingsway and the Frightening Art of Stone Throwing: a Response to Paul Slennett

Posted on June 30, 2010 by | 1 Comment

IF YOU’RE ON Paul Slennett’s emailing list you’ll no doubt have received a copy of his recent comment about the Kingsway polls, but you may be scratching your head and wondering where that comment is. You’ll find it directly on the polls themselves:

  1. Is Kingsway’s practice of comparing their own prices to their own RRPs in order to present things at a discount fair?
  2. Is a meeting in London on July 21st the best way forward for this discussion?

Paul writes:

“If any one of you is without sin, let him be the first to throw a stone”

I believe God is speaking to us through the words of Jesus about the tower of Siloam:

4 Or those eighteen who died when the tower in Siloam fell on them—do you think they were more guilty than all the others living in Jerusalem? 5 I tell you, no! But unless you repent, you too will all perish.

If we gave a contemporary application to these verses, it could read like this:

Do you think that Kingsway are more guilty than us booksellers? I tell you, no! But unless we repent we too will be judged. In the same way, do we think that the Christian bookshops and STL that had to close last year are more guilty than the rest of us? I tell you, no, but unless we repent we too will all perish.

It’s an important point that Paul raises and I take this opportunity to thank him for doing so. I have replied (on both polls, since Paul left his comment on both polls) as follows:

Hi Paul and thanks for your observations.

I have no interest in throwing stones: the last thing I want to see is Kingsway destroyed. On the contrary, it’s because I want to see Kingsway thrive and excel that I am highlighting this issue. I and several others raised these questions with Kingsway privately long before they were raised in public, but Kingsway failed to address the issue constructively.

As followers of Christ do we not have a duty of care towards our brothers and sisters in the faith to challenge them when they go astray? Do we not have a responsibility to highlight hypocrisy when we see it? Is this not what you now believe yourself to be doing in challenging my challenge to Kingsway?

You are right: we all need to examine ourselves. I am painfully aware of Jesus’ teaching about those with logs in their eyes attempting to remove splinters from others’ — but does that teaching take away our responsibilities towards one another? Should we remain silent when we see the “Tower of Siloam” about to collapse on our neighbours’ heads?

The tower may have collapsed on the old STL — but does that mean we should stand back and allow another tower to collapse on Kingsway? Should we not rather be there amidst the rubble helping dig the survivors out?

If you haven’t done so, Paul, please go read my post In Defence of Kingsway: I say again what I essentially said there: Kingsway are not the enemy. I want to continue trading with them and I want to continue supplying their product to my customers — but they need to work with me, with all of us, to make that possible.

I expanded on why I believe it’s important to speak out on issues such as this on my personal blog a few weeks ago in a post entitled Seek ye the good. There seems to be a tendency in some Christian circles to think that we should always and only adopt a lovey dovey sugar’n'sweet niceness in our dealings with each other: we should never criticise, never call one another out for fear of being like those people who dragged that woman — who was undoubtedly guilty, scripture does not pretend otherwise — before Jesus. Let’s face it, who wants to be on the receiving end of that sort of comment from Jesus: Let the one without sin cast the first stone.

But there are important differences in this scenario: those people who dragged the woman before Jesus were out to test him, if possible to bring him down; and if the truth be known I suspect they didn’t care one whit about the woman or her ‘sin’ — if she died as a result of that confrontation, tough. She was nothing but an object to her accusers, a conveniently weak and defenceless person who they could use to trap the prophet who threatened the status quo.

In our scenario, we have Kingsway, a giant of the Christian publishing world, a company so large that by John Paculabo’s own admission, if STL’s prospective buyers had got wind of the fact that Kingsway were considering withdrawing from their STL distribution agreement then those buyers might well have had second thoughts about taking on the business; almost certainly, a significantly lower price would have been secured for the deal: Kingsway, a company that prides itself in its work to alleviate poverty through the Ray of Hope Amazon River Kids project and now in its support of issues of justice and mercy in its promotion of the Micah Challenge.

No: no weak damsel here betrayed by the very men to whom she had turned for what may have been her only way to make a living. Instead, the situation is turned upside-down and back-to-front: we who look up to Kingsway as a company to lead the way, who look up to John Paculabo as a man who we honoured at CBC 2007 with the Angus Hudson Lifetime Achievement Award for his outstanding service within and beyond our trade, who look up to Kingsway as a trading partner enabling us to make a living — we find ourselves betrayed over a simple matter of trade justice that requires nothing more than an executive decision to put right.

And so, with this woman, we kneel at Jesus’ feet … guilty as charged: making a living from selling Kingsway product. Kingsway have the power to take that trade away from us, to deliver it direct to our customers themselves — but now they are caught in the very act of that delivery, like a rabbit in the glare of a car’s headlights … and as Jesus sweeps his gaze across our trade, I wonder what he sees?

He bends down and writes something in the sand. Siloam’s tower teeters on the edge of another collapse. Who will shout a warning? Who will pick up the pieces? How can I remain silent?

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Kingsway: The Poll Results – because the questions haven’t gone away…

Posted on June 24, 2010 by | 13 Comments
Kingsway Polls: Because the questions won’t go away…

Kingsway Polls - Because the questions won’t go away…

OVER THE PAST WEEK OR SO I’ve steered away from the Kingsway pricing issue simply to give the company, and John Paculabo in particular as the company’s spokesman, some breathing space and an opportunity to reflect upon the concerns raised. Those concerns, of course, have not gone away: on what basis do Kingsway consider it a reflection of the King’s way — of Jesus’ way — to promote songs and albums about justice but trade in a way that is so unfair to many of its trading partners? To operate a pricing policy that seems to brazenly fly in the face of Her Majesty’s Government’s guidelines for pricing?

Perhaps there is a reasonable, ethical basis upon which a Christian company can conduct its business in this way, but I confess that I can’t see it. If you can, please do explain.

The polls remain open and I’ll be reinstating that post on the front page over the next few days to give anyone who missed it first time around an opportunity to vote. As far as I can see at the time of preparing this post, nothing has changed and there is no reason to close the polls: revisiting Kingsway’s listing for the not-quite-so-new ‘Very Best of Graham Kendrick’ album as a typical example, Kingsway are still comparing their ‘discounted’ prices to their own RRPs despite never having charged those RRPs. Perhaps the guidelines that apply to all other retailers simply don’t apply to Kingsway? I don’t know. If you do, please do explain.

To the poll results so far, however:

Poll 1: Is Kingsway’s practice of comparing their own prices to their own RRPs in order to present things at a discount fair?

Is Kingsway's practice of comparing their own prices to their own RRPs in order to present things at a discount fair? (Results)

Poll 2: Is a meeting in London on July 21st the best way forward for this discussion?

Kingsway Poll 2: Results as at 23/06/2010

Is a meeting in London on July 21st the best way forward for this discussion? (Results)

It’s a fascinating set of results, with 59 out of 81 (73%) respondents to the fairness question agreeing that Kingsway’s practice is either ‘a bit dodgy at best’ or ‘completely outrageous’. Interestingly, however, 21 voters (26%) think it’s a ‘perfectly acceptable’ practice — and I hope that someone from amongst those 21 will have the courage of their convictions and offer us an explanation for that. Perhaps those 21 are correct and the rest of us have misunderstood the true dynamics of the situation?

As for the meeting, only 1 person has booked the date in their diary. Whoever you are, if the meeting does go ahead, you are hereby cordially invited to contribute a guest post to let the rest of us know what transpires. The majority by far, 40 out of 54 (74%) respondents, believe that the meeting is unnecessary, although 18 voters (33%) concede that a meeting is ‘probably the only way to get a sensible response from Kingsway.’ 12 voters (22%) think that the meeting is a good idea but can’t make it.

I therefore suggest to John that his call for a meeting may not in fact be the best way for Kingsway to deal with this issue. But it is, of course, your call entirely, John: thank you for listening to your customers’ concerns.

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Kingsway: Trade Distribution Update

Posted on June 16, 2010 by | Leave a comment
Kingsway - Breaking News, 15/06/2010

Kingsway - Breaking News, 15/06/2010 (pdf, 135kb)

In an upbeat message to trade customers, Kingsway have announced a number of significant improvements to their distribution services including increased staffing levels at both ends of the ordering process. Four more staff  have been appointed in customer services and twelve extra staff are now working in warehousing, pick & pack, despatch and admin. Further developments are in the pipeline which should see a 300% increase in the picking area by the end of August 2010, leading to increased stock availability, improved accuracy and faster turnaround of orders.

The announcement makes no mention, however, of trade customers’ ongoing concerns over Kingsway’s price comparisons practice at kingswayshop.com, a source of frustration and disappointment for UK Christian retailers which has recently gained international attention. As yet it remains unclear whether or not the meeting called for by John Paculabo to address this issue (suggested date 21st July 2010) will go ahead.

The full announcement, issued yesterday, 15/06/2010, is as follows:

Kingsway: Breaking News

Dear Friends,
I am writing to you with an update on Kingsway’s Distribution.

As you know there have been many changes over the last 6 months here in Eastbourne since we have taken our distribution back in house.

We have shipped over 7000 orders to date and we acknowledge that there have been some issues with accuracy and speed.

We have been working hard to improve this and have been working with our consultants who have been responsible for the set up of distribution for Gardners Books UK and David C Cook Canada.

We have already begun to implement some of their recommendations that will improve the 3 key areas for you our customers of Speed, accuracy and availability.

The following steps have already been introduced:

  • 4 more staff dedicated to customer service and sales
  • An evening warehouse shift to allow an extra 6 hours of pick, pack and dispatch
  • 12 new warehouse and admin staff to increase the turnaround of orders.

The next stage for us is to increase the size of our picking areas in our warehouse. This is well under way and by the End of August we will have 300% more picking areas which will increase availability enormously.

I will give you a weekly update on how things are progressing here at Kingsway.

If you have any questions or queries then please contact me.

Best regards,

James Batterbee
Telephone Sales Manager

Unlike kingswayshop.com, David C Cook Canada’s consumer site, yourmusiczone.com, does not undercut retailers’ prices. For a Canadian Christian bookseller’s perspective on yourmusiczone.com see YourMusicZone Website Re-Launch.

As noted last week, carriage free shipping applies to all Kingsway UK trade orders until at least the end of June 2010. I take this opportunity to thank James Batterbee and the rest of the customer service and warehouse team for all their efforts on our behalf.

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In Defence of Kingsway

Posted on June 14, 2010 by | 1 Comment

Over the last few days concerns have been raised over the ‘tone’ of discussions here with regards to Kingsway, perhaps the strongest concern being voiced by the pseudonymous Al:

Whatever the rights and wrongs of this issue, it has all the feel of a quite vituperative crusade against Kingsway, which is out of all proportion to the alleged “deceit” which is apparently being perpetrated. I noticed in one of the discussions on this issue that the word “illegal” was used (and the reference to government guidelines rather gives the impression that some “crime” is being committed).

This post seeks to address those concerns: first of all, there is no ‘crusade’ against Kingsway, vituperative or otherwise, and I apologise if that has seemed the case; second, when a supplier engages in a business tactic that undermines its trade partners, when concerns about that matter are brought to the supplier’s attention, when that supplier’s Executive Director refuses to address the issue and treats the forum where those concerns are raised with open contempt, then I think the level of debate thus far is neither unreasonable nor unwarranted and its tone remarkably restrained; third, the question of the legality of Kingsway’s price comparison practice can, I  suggest, only be determined by the courts or perhaps ruled upon by the Office of Fair Trading, but we have not yet reached that point and I for one hope that we do not (for the specific context of my earlier use of the word ‘illegal’ please see this comment).

The Government guidelines exist for two main purposes: to help traders ensure that they comply with the law; and to provide protection for consumers against traders who do not. Kingsway, I suggest, need to:

  1. Examine their price comparison practice with specific reference to those guidelines
  2. Reflect upon the impact that their practice is having upon their trade partners
  3. Decide how they wish to address the matter

Until they address the matter, the questions won’t go away.

Back to the notion of a ‘crusade against Kingsway’, however: I reiterate what I have said before: Kingsway produce some excellent product — my customers love it and I want to supply it to them, but Kingsway themselves are enticing my customers away. I say again: I do not wish to cease trading in Kingsway product.

And listen to this heart cry from Michael Gibson:

I am one of those who has voiced concern publicly more than most. I have done so out of frustration more than anything else. I honestly believe that Kingsway have misunderstood the motives behind many of the comments so let me make my position clear. I WANT TO TRADE WITH KINGSWAY! I just can’t in the current circumstances. John you may not be contributing to this any more but if you’re still reading it then get my remark…see my problem…see my heart and give me a reason to smile and buy from you. That’s what I want to do and I believe that’s what many of us want to do.

None of us here, to my knowledge, bear Kingsway any ill will. They are an important trading partner and represent some important artists who I am sure would be equally heartbroken if they knew of this ludicrous state of affairs.

So let there be no further misunderstanding: let this post stand in testimony to Kingsway’s excellence; let those who wish to sing Kingsway’s praises do so freely; and to John Paculabo I say, as I said at the end of our last email exchange:

My thoughts and prayers are with you and all your colleagues at Kingsway:
May you find the grace to work your way though this difficult time;
May God’s love surround you;
May you find peace.

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Truth, Lies and CD Prices: Taking a Closer Look at Kingsway’s Price Comparisons

Posted on June 8, 2010 by | 20 Comments
BERR Pricing practices guide: guidance for traders on good practice in giving information about prices

BERR Pricing Practices Guide (pdf, 422kb)

Today I’d like to take a closer look at Kingsway’s CD price comparisons, with specific reference to the Government’s Pricing Practices Guide: guidance for traders on good practice in giving information about prices (pdf, 422kb | Google Docs ‘Quick View’). If you’re brave (or foolhardy) enough to follow my personal blog you’ll recognise the first few paragraphs, adapted from my weekend post, Kingsway: dishonest discounts or fair practice?

It seems to me that any company advertising their own products on the basis of “Our price £X, RRP £Y” when they themselves have set the RRP is operating in a grey area at best, if they’re not actually being downright dishonest. When a supposedly Christian company engages in this sort of practice, it’s a double whammy. But what does the Government guidance itself say? Whilst the guidance is not comprehensive, several sections have some bearing on this situation:

1.2 Comparisons with the trader’s own previous price

1.2.3 (a) A price used as a basis for comparison should have been your most recent price available for 28 consecutive days or more;

Kingsway, of course, are not claiming that their RRPs are a ‘previous price’ so it could be argued that the specific guidance of 1.2.3 (a) does not apply. But if the RRP has never been charged, is it not a purely fictional device? Let’s move on, then, to consider the guidance on RRPs:

1.6 Comparisons with “Recommended Retail Price” or similar

1.6.1 You should not use a recommended retail price, or similar, as a basis of comparison which is not genuine, or if it differs significantly from the price at which the product is generally sold.

1.6.2 You should not use an RRP or similar for goods that only you supply.

Given that Kingsway’s RRPs are not generally charged by Kingsway themselves but are only used in their dealings with other traders, any claim that those RRPs are genuine seems a tad shaky at best; and since Kingsway are the sole supplier of Kingsway products — even when made available through other traders — then, with the best will in the world, I’m finding it difficult to see how Kingsway’s practice can be interpreted as anything but a deception, the ‘discount’ nothing more than bait to draw people in, the RRP a hook to hang it from. The deception may not be intentional, of course: most speeding motorists don’t intend to break the speed limit either — my concern here is not with intentions but consequences.

Let’s examine a specific example: backtrack for a moment to section 1.3:

1.3 Introductory offers, after-sale or after-promotion prices

1.3.3 You should not indicate an after-sale or after-promotion price if you do not intend to continue to offer identical products at that price for a reasonable time. What is reasonable will depend on the circumstances. In general terms a period of at least 28 consecutive days in the 3 months after the end of the offer period or after the offer stocks run out may in many circumstances be reasonable…

Now consider the following before and after screenshots of the new ‘Very Best of Graham Kendrick’ album:

The Very Best of Graham Kendrick: Pre-order price £10.99 compared to RRP £14.99

Before: The Very Best of Graham Kendrick - Pre-order price £10.99 v/s RRP £14.99

Customers were invited to ‘pre-order’ at £10.99 on the basis of a 27% saving against the RRP of £14.99. But afterwards, now that the album is available, we find this:

The Very Best of Graham Kendrick: Kingsway price £11.99, Kingsway RRP £14.99

After: The Very Best of Graham Kendrick: Kingsway price £11.99 v/s Kingsway RRP £14.99

The ‘pre-order’ offer period is over but the actual price now being charged by Kingsway is only £11.99: customers who thought they’d be saving £4.00 by placing a ‘pre-order’ have in fact only saved £1.00.

Perhaps Kingsway intended to charge the so-called RRP but forgot? Only Kingsway themselves can answer that question, of course, but the guidance notes are not about intentions: they are about practice, designed to protect consumers from unfair trading activities as set out at the beginning of the guidance notes:

1.1 Price comparisons generally

1.1.1 The CPRs [Consumer Protection from Unfair Trading Regulations 2008] prohibit traders from giving false or misleading information, or omitting material information, about price or the manner of calculation of the price for a product, where this causes or is likely to cause the average consumer to take a transactional decision he would not otherwise have taken. If you choose to make price comparisons, you should therefore be able to justify them, and to show that any claims you make are accurate and valid – in particular, that any price advantage claimed is real.

Would “the average consumer” have taken the “transactional decision” to ‘pre-order’ this album had they known that the price was only going to rise by £1.00 rather than by £4.00? Only those who made that decision can answer that question for certain, but it seems fair to say that the price advantage claimed was not real.

So now we watch this space: You Have Shown Us: Songs of Justice, Mercy and Humility: Pre-order price, £9.99; RRP, £12.99:

You Have Shown Us: Songs of Justice, Mercy and Humility: Pre-order price, £9.99; RRP, £12.99

You Have Shown Us - Songs of Justice, Mercy and Humility - Pre-order price, £9.99; RRP, £12.99

Will customers placing ‘pre-orders’ for this item really save £3.00, 23% off the advertised RRP? Or will the price simply go up by £1.00 as per the Kendrick album? Will Kingsway rise to the Micah Challenge’s call for trade justice in their own business practices? Or will John Paculabo attempt to sidestep Micah’s challenge as he did when I cited Amos?

My updated message to Kingsway is this:

Please stop misleading your personal customers and undermining your retail partners with your dishonest discounts and fictionalised RRPs. You make a beautiful noise — but that noise is no more than a resounding gong, a clanging cymbal if you build it upon dishonourable or deceptive business practices.

The beauty of your worship recordings is marred by your behaviour — as Amos said so long ago, “Away with the noise of your songs! I will not listen to the music of your harps. But let justice roll on like a river, righteousness like a never-failing stream!”

Don’t just record songs about justice: practice it!

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Does the future have a bookshop?

Posted on June 2, 2010 by | 13 Comments
Photo of Ian Matthews

Ian Matthews

Ian Matthews writes:

There has been much lively debate over the last twelve months or so about the future of Christian publishing and, especially, retailing; much of it triggered by the game-changing events in Carlisle. On this blog there has been some heated discussion about the ethics of on-line retailing, local support and what the future holds. With the kind permission of Phil I wanted to share some of my thoughts having worked on both sides of the fence, and as someone who now earns part of his living thinking about new ways of communicating.

I wanted to look at the music industry as an example of what might happen. There was a time when even a modest town would have a thriving independent ‘record’ store – perhaps two – and probably one of the major chains. The local independent created a niche through selling more specialised genres and artists (less top 40 stuff) and by connecting closely with the local music scene – promoting concerts and events and being a part of the local music scene. Such a place was already endangered by the aggressive pricing of the multiple retailers before the advent of the CD, and their discounting of backlist didn’t help. By the time downloading started to take hold (25% of all music sales – physical or downloaded – is now through iTunes alone, never mind Amazon, play.com, emusic etc; and all of the file-sharing) their demise was certain.

The chains thought they had won, but they too are now failing (in the case of Zavvi, formerly Virgin Megastore, they have failed) and any high street presence of a CD store is looking unlikely in all but the biggest retail destinations.

What has this done locally? 30 – 40 people who used to work in an average town now have had to find alternative careers and people who are looking for obscure artists are going online. However, the local music scene in the UK is healthier than it has been for years – open mic events, pubs with gigs, concerts, music festivals etc all contributing to a vibrant community in many towns. Much of this local stuff is powered through the internet – facebook, myspace, twitter etc, and local artists are financing it through both physical sales and selling online (tunecore and CD Baby both offer schemes for unsigned acts to sell via the major on-line retailers). Local community in the niche interest area hasn’t disappeared with the loss of the retail outlets. In fact, this has driven more imaginative ways of engaging people in music and musicians locally.

So, is there hope for the Christian bookshop? There is another example that can, I think, point the way. The retail chain Games Workshop started life as a small games retailer that hit the big time by securing the rights to Dungeons and Dragons in the UK, before developing a number of product lines of their own. It catered for a dedicated and small market of hard-core ‘gamers’, and found their audience disappear almost overnight with the advents of high-quality computer games. Their response, in the last decade, was both unexpected and risky.

They decided that rather than continue chasing after their shrinking customer base, they would build a new community. They transformed their stores into locations that were family-friendly, open (a lot) and welcoming. They trained a whole new set of managers who were committed to this. My daughter has started to enjoy their Lord of the Rings game and, when she wanted to do this we went into the local shop to have a look.

As soon we walked in we were greeted by a friendly shop assistant (who actually turned out to be the manager). After a brief explanation he sat us both down, talked through the range and persuaded us to have a go painting one of the little characters each (they had 4 painting stations all set up and ready to go). He talked us through each step of the way, chatting with us and making us feel very welcome. After this was done, we took our figures and he walked us through the actual game for half an hour. At the end of this, he had spent an hour and a half with us and there was no expectation that we would buy at this point (although we did buy some paints and brushes). He talked through all the options and invited my daughter back to one of the many events they did.

Here is the point: he was creating community not selling to us.

The shop has three ‘gaming rooms’ upstairs as well as three tables on the shop floor and the painting stations. The products are all around, but the actual activity is the focus – people can come in and play (and paint) at any time. They run ‘academies’ on a Sunday afternoon (that are free of charge) and evening tournaments. Their business comes from their community. Oh, and we were able to take the figures we painted away with us … for free.

What conclusions would I draw from these examples?

  1. There is no right for a Christian bookshop to exist
  2. The world is changing, and we all need to adapt. The bookshop may go the way of the music shop, but life still carries on
  3. Witness and community can exist and thrive without a Christian bookshop – in the end the Church will find creative ways
  4. Arguing that people should shop in a local Christian bookshop for ethical reasons will only create short-term loyalty
  5. Creating community is more important than the sale, and taking the time with a new customer was the key in the latter example. I felt absolutely no pressure to leave, leave him alone or buy anything.

I do think there can be a future, but it is not a future made by generous suppliers, guilty customers or a shrinking customer base. It is a future made by the imaginative, creative and risk-taking individuals who will find the new models that will succeed.

Ian Matthews worked in both retail and publishing. He was head of marketing for a telecommunications retailer, owned and edited the Christian trade magazine, consulted for a range of publishers and spent five years running Zondervan’s operations in the EU. He is currently working with a student ministry called EGM Films, running a literary agency and working as a marketing consultant.

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Posted in Christian Bookshops, Christian Music, Guest Posts

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Kingsway Polls: Because the questions won’t go away…

Posted on May 31, 2010 by | 24 Comments

Over the last few weeks we’ve been having a lively discussion about Kingsway’s practice of offering “discounts” at kingswayshop.com by comparing their own prices to their own RRPs, typified in the following screenshot of the new Very Best of Graham Kendrick album:
Read on and cast your vote: Poll 1: Is Kingsway’s practice of comparing their own prices to their own RRPs in order to present things at a discount fair? and Poll 2: Is a meeting in London on July 21st the best way forward for this discussion?

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Posted in Christian Music

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