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One example is car dealers. Sure, they can charge MSRP, but they will run out of cars pretty fast. And since they have no control over how much they are allotte
by lvl102 3y ago
One example is car dealers. Sure, they can charge MSRP, but they will run out of cars pretty fast. And since they have no control over how much they are allotted by the manufactures, they’re effectively putting themselves at a significant disadvantage versus competition in their market. So the logical thing would be to match their competition and mark up.
In an age where advertisement budget is key to survival for many companies, profitability could determine who gets ahead over the long run.