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I disagree on Amazon. They have pricing power (many consumers won't price compare), and they are profitable. They may be heavily investing in new businesses wit
by ikeboy 10y ago
I disagree on Amazon. They have pricing power (many consumers won't price compare), and they are profitable. They may be heavily investing in new businesses with their profits, but the main business is still throwing off cash.
- petra 10y agoAlso , with regards to retailers , pricing power looks quite different - raising profit margins from 2.5%(like walmart's, a great business) to say 5% doubles your profit. Can Amazon create enough incentives for people to pay that extra 2.5% ? probably. And even if you're a penny pinching customer, without prime etc, Amazon can offer you a personalized price, comeptitive with everybody.
- ikeboy 10y agoPersonalized prices are difficult to manage, partly because they can be gamed, and partly because it's bad PR. I'm trying to enable it on a larger scale with https://icanpriceit.com/ https://icanpriceit.com/. But that's explicitly opt in: you name the price, and understand that you won't get a better price than you put in. You're trading the possibility of even lower prices for the ability to name your own price and have us fulfil it if it's within our minimum margin. I can't see Amazon doing it, at least not within the next couple of years.