Originally posted by brandondan1
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The reason companies want this is then they have the right to form pacts with retailers to actually sell at an agreed price and only sell to people who join in that agreement. That keeps online wholesalers from selling shit at wholesale instead of retail.
The "hitch" is the law of supply and demand. People will only buy so much as such a price, you exceed that and its like being thirsty in the middle of the desert, you can feel pretty alone. Charmin goes into these agreements to fix the price of their TP and only sell it at collaborating businesses at $2 a roll. Then everyone says, "Fuck Charmin!' and goes and buys Angel Soft. There will always be someone who will be willing to sell it for a bit less just to get the volume sales and turn a profit at the big guys expense.
And that doesnt even include the fact that it is an absoloute BITCH to get someone to agree to a collusive contract. What retailer is doing to stick with a slow selling, overpriced product while the Wal-Mart down the street is pouring another brand out the doors.
Speaking of Wal-Mart. Do you know what would happened if a manufacturer went to Wal-Mart and tried to force them to fix a price? Wal-Mart would fucking END their business as they know it.
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