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Suppose you had a car dealership. Cars were flying off the lot. No discounts or rebates needed. Google comes in and buys 10, Facebook takes another 10. Amazon t
by specialp 8y ago
Suppose you had a car dealership. Cars were flying off the lot. No discounts or rebates needed. Google comes in and buys 10, Facebook takes another 10. Amazon then comes in and asks for 25 and wants a $5000 rebate for each car. You give it to them. That rebate was still in the margin of what you were making, but now all your other loyal customers that had no problem buying your product for the quality of what you sell now want concessions too. Yes you still "made money" but you devalued a premium product that was selling well for no good reason. The better move business wise would be to tell the person that wants a discount to go to someone willing to offer it. Amazon needs NYC as well.
- skookumchuck 8y agoIf Google comes in with an order for 25 cars too, instead of 10, they can get the discount as well. Quantity discounts are normal and commonplace, and do not result in single item prices being forced down to match. Businessmen aren't fools.