Quote:
Originally Posted by FizzyWater
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".
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The problem you can encounter is when VeryBigRetailer attempts to dictate terms to Acme Corp.: "Give us the discount we want, or we don't stock your product!"
Depending upon who Acme Corp. is, they may be over a barrel, as they may not be able to survive without VeryBigRetailer's sales, but they also may not be able to survive offering the discount VeryBigRetailer wants. VeryBigRetailer just wants to increase it's market share, and may not
care what happens to Acme Corp.
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Dennis