Quote:
Originally Posted by SteveEisenberg
I doubt retailers will agree to sell a fixed price item at their cost. Staples does need to make money when they sell items at a consistent full price. Near cost? Relatively low markups are typically associated with price maintenance.
The same reason they periodically deep discount every popular item not under price maintenance. It brings people into the stores where they will buy other items that are profitable.
What do you call a store that loses X amount on one third of sales and makes the same amount on two thirds of sales? Profitable. While the fractions I state are too simplified to be real-world, that's the basic strategy of Amazon's US reseller community -- when they are allowed to apply it.
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Apparently, Staples doesn't agree with your logic, since they chose not to discount Kindles (aside for the several times when they did
mine was a discounted Staples Kindle...).