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Or gives the product away --- a certain shoe company's gifting of footwear destroys the business of local cobblers.
by WillAdams 2y ago
Or gives the product away --- a certain shoe company's gifting of footwear destroys the business of local cobblers.
- norir 2y agoYes and once they have destroyed the competition, then they start charging.
- vouaobrasil 2y agoYeah, predatory pricing and its logical extreme, giving the product away, is another common strategy of big business.
- WalterBright 2y agoThere are three kinds of prices: 1. below the competition - predatory pricing, dumping 2. same as the competition - collusion, price fixing, cartel 3. more than the competition - gouging, profiteering All three are illegal. There's no legal way to set a price.
- vouaobrasil 2y agoBelow the competition ins't predatory if you can make a profit off of it. Predatory specifically means that you price it at a serious loss and then jack up the price when the competition dies.
- WalterBright 2y agoCompanies have sales at a loss all the time. Would you rather they put the merchandise that doesn't move into the landfill? > then jack up the price when the competition dies. That never happens, for good reason. Think about all the money a big corporation would lose trying to sell below cost to drive out a mom and pop.
- BadHumans 2y agoI'm assuming this isn't a random hypothetical but I don't know what shoe company you are talking about.
- kevvok 2y agoI’ve heard this about TOMS