3 ms·
Yeah, predatory pricing and its logical extreme, giving the product away, is another common strategy of big business.
by vouaobrasil 2y ago
Yeah, 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.