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> Until the second part of OP's story happens - which is the competitors die off and then Amazon jacks up the prices. Whenever some disrupter comes into a mark

> Until the second part of OP's story happens - which is the competitors die off and then Amazon jacks up the prices. Whenever some disrupter comes into a market, you always see some people saying this "just you wait, they'll jack up the prices sky high any minute now!!" and it seems to happen rarely, if ever. For example, there are plenty of small towns where Wal-mart was able to dominate and drive out small mom and pop retail shops. I've heard plenty of complaints about that, but I've never heard anyone say, "...and then after they drove out all the little shops, the prices went through the roof!!"

user3359 8y ago
I can't speak to mom and pop shops in small towns. I think while the concept is the same, this would be more along the lines of the town opening it's own discount store and putting the mom and pops out of business. But I can attest to 2 products I've ordered yearly for the past 3 years, increase in price about 10% each year. The diversity of competing products has decreased substantially.
394549 8y ago
> Whenever some disrupter comes into a market, you always see some people saying this "just you wait, they'll jack up the prices sky high any minute now!!" and it seems to happen rarely, if ever. It's happening at Amazon. When they started, their prices were often much cheaper than physical retail. Now they're about the same, and sometimes outrageously higher. > For example, there are plenty of small towns where Wal-mart was able to dominate and drive out small mom and pop retail shops. I've heard plenty of complaints about that, but I've never heard anyone say, "...and then after they drove out all the little shops, the prices went through the roof!!" I doubt Wal-Mart makes pricing decisions like that at the store level, so your example doesn't really hold up.
- TheTrotters 8y ago
  > It's happening at Amazon. When they started, their prices were often much cheaper than physical retail. Now they're about the same, and sometimes outrageously higher. I'm curious if you have any examples. I have been very happy with Amazon. Even though every now and then I look up competitor's prices and selection Amazon is usually better at one or both. When they aren't it's not by a lot. Many people in this thread have complaints about Amazon but my experience has been great so I'm wondering where the disconnect is coming from.
  - 394549 8y ago
    > I'm curious if you have any examples. I have been very happy with Amazon. Even though every now and then I look up competitor's prices and selection Amazon is usually better at one or both. When they aren't it's not by a lot. This is what did it for me: https://www.amazon.com/Philips-Hue-Ambiance-Equivalent-Assistant/dp/B01F6T4R0S/ https://www.amazon.com/Philips-Hue-Ambiance-Equivalent-Assis... https://www.homedepot.com/p/Philips-Hue-White-Ambiance-A19-LED-60W-Equivalent-Dimmable-Smart-Wireless-Light-Bulb-461004/206923129 https://www.homedepot.com/p/Philips-Hue-White-Ambiance-A19-L... https://www.bestbuy.com/site/philips-hue-white-ambiance-a19-wi-fi-smart-led-bulb-white/5101600.p?skuId=5101600 https://www.bestbuy.com/site/philips-hue-white-ambiance-a19-... All $29.99. A couple years ago I was buying a lot of these in ones and twos. I was also also having a lot of trouble with Amazon Logistics messing things up (and Amazon refusing to allow me to "deprioritize" them, so I could get my package through another carrier with fewer issues). That struggle lead me to take another look at local retail, and removed my illusions about Amazon's automatic superiority. The local stores have most of the same items, for the same price, and available more quickly without shipping delays. They also don't have the fake-review fueled counterfeit problems that Amazon has. As I've learned more about shopping at local stores, my Amazon use has been reduced to items that are only available on it or that I don't know where to find elsewhere.
    - TheTrotters 8y ago
      Fair enough, though according to camelcamelcamel the price of Phillips Hue has been lower at times on Amazon: https://camelcamelcamel.com/Philips-Hue-Ambiance-Equivalent-Assistant/product/B01F6T4R0S https://camelcamelcamel.com/Philips-Hue-Ambiance-Equivalent-... If their data is correct there were times when it was available for 10-20% off. Having read more comments in this thread I'm starting to think that my experience has been different (for the better) because 80+% of the time I know what I'm looking for before I visit Amazon. I rely on Wirecutter and other websites for recommendations if I'm looking for something I know little about. Another thing is that Amazon has almost everything. It's much simpler to buy a couple of books + nail clippers + socks (one of my recent purchases) from them than make separate orders elsewhere. And unlike probably most of the posters here I'm from Europe and I haven't experience any unusual issues with shipping so maybe it's a real and more recent concern in the US.
jdmichal 8y ago
Redbox has done this. I mean, they're still cheaper than Blockbuster ever was for a "new release" movie. But they have just about doubled their price.
Paul-ish 8y ago
The troubles don't show themselves on the consumer side, they show up on the labor side. Monopsony makes it hard to find competing job offers when all the competing stores have been closed.
- TulliusCicero 8y ago
  Oh, that's a good point. I've often thought that the reason unions are so important is that employers bargain collectively by default because, well, companies are groups of people, not individuals. On the other hand, IIRC studies show that larger companies pay more than smaller ones, and I think there have even been suggestions that this explains some of the GDP per capita differences between developed nations, that some have more large companies that are then more productive due to economies of scale and specialization.
notriddle 8y ago
Instead, Walmart's quality went down the toilet.
chipotle_coyote 8y ago
I think the problem (for consumers) is usually the lower selection. Walmart focuses on the best sellers in any category, and the "long tail" that specialty stores can provide goes away. (Well, that and the problem that Walmart sometimes drives out all the mom and pop shops and then closes the Walmart a few years later, leaving the town with nothing but the next closest Walmart 30 miles away.)

user3359 8y ago

I can't speak to mom and pop shops in small towns. I think while the concept is the same, this would be more along the lines of the town opening it's own discount store and putting the mom and pops out of business. But I can attest to 2 products I've ordered yearly for the past 3 years, increase in price about 10% each year. The diversity of competing products has decreased substantially.

394549 8y ago

> Whenever some disrupter comes into a market, you always see some people saying this "just you wait, they'll jack up the prices sky high any minute now!!" and it seems to happen rarely, if ever. It's happening at Amazon. When they started, their prices were often much cheaper than physical retail. Now they're about the same, and sometimes outrageously higher. > For example, there are plenty of small towns where Wal-mart was able to dominate and drive out small mom and pop retail shops. I've heard plenty of complaints about that, but I've never heard anyone say, "...and then after they drove out all the little shops, the prices went through the roof!!" I doubt Wal-Mart makes pricing decisions like that at the store level, so your example doesn't really hold up.

TheTrotters 8y ago
> It's happening at Amazon. When they started, their prices were often much cheaper than physical retail. Now they're about the same, and sometimes outrageously higher. I'm curious if you have any examples. I have been very happy with Amazon. Even though every now and then I look up competitor's prices and selection Amazon is usually better at one or both. When they aren't it's not by a lot. Many people in this thread have complaints about Amazon but my experience has been great so I'm wondering where the disconnect is coming from.
- 394549 8y ago
  > I'm curious if you have any examples. I have been very happy with Amazon. Even though every now and then I look up competitor's prices and selection Amazon is usually better at one or both. When they aren't it's not by a lot. This is what did it for me: https://www.amazon.com/Philips-Hue-Ambiance-Equivalent-Assistant/dp/B01F6T4R0S/ https://www.amazon.com/Philips-Hue-Ambiance-Equivalent-Assis... https://www.homedepot.com/p/Philips-Hue-White-Ambiance-A19-LED-60W-Equivalent-Dimmable-Smart-Wireless-Light-Bulb-461004/206923129 https://www.homedepot.com/p/Philips-Hue-White-Ambiance-A19-L... https://www.bestbuy.com/site/philips-hue-white-ambiance-a19-wi-fi-smart-led-bulb-white/5101600.p?skuId=5101600 https://www.bestbuy.com/site/philips-hue-white-ambiance-a19-... All $29.99. A couple years ago I was buying a lot of these in ones and twos. I was also also having a lot of trouble with Amazon Logistics messing things up (and Amazon refusing to allow me to "deprioritize" them, so I could get my package through another carrier with fewer issues). That struggle lead me to take another look at local retail, and removed my illusions about Amazon's automatic superiority. The local stores have most of the same items, for the same price, and available more quickly without shipping delays. They also don't have the fake-review fueled counterfeit problems that Amazon has. As I've learned more about shopping at local stores, my Amazon use has been reduced to items that are only available on it or that I don't know where to find elsewhere.
  - TheTrotters 8y ago
    Fair enough, though according to camelcamelcamel the price of Phillips Hue has been lower at times on Amazon: https://camelcamelcamel.com/Philips-Hue-Ambiance-Equivalent-Assistant/product/B01F6T4R0S https://camelcamelcamel.com/Philips-Hue-Ambiance-Equivalent-... If their data is correct there were times when it was available for 10-20% off. Having read more comments in this thread I'm starting to think that my experience has been different (for the better) because 80+% of the time I know what I'm looking for before I visit Amazon. I rely on Wirecutter and other websites for recommendations if I'm looking for something I know little about. Another thing is that Amazon has almost everything. It's much simpler to buy a couple of books + nail clippers + socks (one of my recent purchases) from them than make separate orders elsewhere. And unlike probably most of the posters here I'm from Europe and I haven't experience any unusual issues with shipping so maybe it's a real and more recent concern in the US.

jdmichal 8y ago

Redbox has done this. I mean, they're still cheaper than Blockbuster ever was for a "new release" movie. But they have just about doubled their price.

Paul-ish 8y ago

The troubles don't show themselves on the consumer side, they show up on the labor side. Monopsony makes it hard to find competing job offers when all the competing stores have been closed.

TulliusCicero 8y ago
Oh, that's a good point. I've often thought that the reason unions are so important is that employers bargain collectively by default because, well, companies are groups of people, not individuals. On the other hand, IIRC studies show that larger companies pay more than smaller ones, and I think there have even been suggestions that this explains some of the GDP per capita differences between developed nations, that some have more large companies that are then more productive due to economies of scale and specialization.

notriddle 8y ago

Instead, Walmart's quality went down the toilet.

chipotle_coyote 8y ago

I think the problem (for consumers) is usually the lower selection. Walmart focuses on the best sellers in any category, and the "long tail" that specialty stores can provide goes away. (Well, that and the problem that Walmart sometimes drives out all the mom and pop shops and then closes the Walmart a few years later, leaving the town with nothing but the next closest Walmart 30 miles away.)