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FizzyWater · 12-05-2010, 02:05 AM

I find it frustrating when a seller dictates terms to a reseller.

However, there was an explanation on this thread about how it affects the authors - how the change in price comes back and changes the amount the author receives. I don't think that's fair either.

It seems to me that a reseller should have the right to offer a discount out of the profits they would have received...but it's the reseller's choice to offer that discount. It shouldn't hurt the seller's profits unless they agree on it up-front together.

I don't know if I'm saying that well.

If Acme Corp sells a widget for $10 to BigReseller, suggesting a resale price of $20, but BigReseller sells it for $18, Acme still makes its $10. BigReseller is taking a risk, hoping that by losing $2 in an individual widget price, they'll still make more money overall, because more people will by the widgets from BigReseller at $18 than $20.

But BigReseller doesn't have the right to turn around to Acme Corp and say, "hey, I offered a coupon, so I'm only paying you $8 for your widget".

12-05-2010, 02:05 AM	#73
FizzyWater You kids get off my lawn! Posts: 4,220 Karma: 73492664 Join Date: Aug 2007 Location: Columbus, Ohio Device: Oasis 2 and Libra H2O and half a dozen older models I can't let go of	I find it frustrating when a seller dictates terms to a reseller. However, there was an explanation on this thread about how it affects the authors - how the change in price comes back and changes the amount the author receives. I don't think that's fair either. It seems to me that a reseller should have the right to offer a discount out of the profits they would have received...but it's the reseller's choice to offer that discount. It shouldn't hurt the seller's profits unless they agree on it up-front together. I don't know if I'm saying that well. If Acme Corp sells a widget for $10 to BigReseller, suggesting a resale price of $20, but BigReseller sells it for $18, Acme still makes its $10. BigReseller is taking a risk, hoping that by losing $2 in an individual widget price, they'll still make more money overall, because more people will by the widgets from BigReseller at $18 than $20. But BigReseller doesn't have the right to turn around to Acme Corp and say, "hey, I offered a coupon, so I'm only paying you $8 for your widget".