"Tim McNamara" <[email hidden]> wrote in message "]news:[email hidden]...
Quoted message said:
And BTW, I have operated one successful small business and have been on the board of another for years, so like many people in this forum I am familiar with the principles.
Sorry, Tim.... but from what you presented that is highly doubtful. Better luck next time!
This is common practice in most supply chains. The manufacturer does not force dealers to sell at a certain price. They will just refuse to sell more product to retailers who discount the price, or charge them more at the wholesale level. Sometimes they only get upset if their product is advertised at a low price. That's why it's not price fixing.
There are several good reasons for manufacturers to do this,
Perhaps in supply-side economics, but not in demand-side economics. Prestige-oriented boutique manufacturers (e.g., Montblanc) use this strategy to maintain snob appeal while selling an inferior product sometimes, but that is not a *good* reason for this practice.
Sometimes it's counterproductive. Look at how good Avocets market penetration is- their position has been severely hurt by their stubborn insistence on retailers selling at the full MSRP and ridiculous dealer-direct minimum wholesale orders. If they were smarter, their tires would dominate the market instead of being hard to find.
He who hesitates is TOAST! I went back to their site, ready to pull the trigger, and found that the items I was interested in (a wheelset) are now about $100 more, making them less-than-competitive with other offers out there. Bumma.
"Tim McNamara" <[email hidden]> wrote in message news:m2ad1zuwkw.fsf@Stella- Blue.local...
Quoted message said:
And BTW, I have operated one successful small business and have been on the board of another for years, so like many people in this forum I am familiar with the principles.
Sorry, Tim.... but from what you presented that is highly doubtful. Better luck next time!