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General Asylum General audio topics that don't fit into specific categories. |
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General Asylum General audio topics that don't fit into specific categories. |
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In Reply to: Re: Price-fixing or MSRP, what's the difference? posted by ontrack2@gmail.com on March 25, 2007 at 14:54:39:
> Could not imagine someone selling for less than cost.That's done all the time. Stores often have "loss leaders" where a below cost price is advertised with the expectation that most customers who are attracted by that price will be buying other items which are profitable. Supermarkets often do this. (Sure, you can go to multiple stores to scoop only the loss leaders from each one, but for most people, their time and gas money is worth something to them.)
Another classic reason to sell below cost is to put your competition out of business. Big mega-corp comes into town and blows the local competition out of the water, then raises prices when the competitors are gone. (That looks like a solid theory if you say it fast, but things are much more complex than that.)
However, as someone else noted, retailers are generally free to sell you things at or below cost if they wish. What IS legal for the manufacturer to do is control the advertising of their product, and that can include advertised prices.
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Follow Ups
- Re: Price-fixing or MSRP, what's the difference? - mls-stl 16:16:05 03/25/07 (0)
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