Quote:
Originally Posted by ApK
But what you described did not appear to be "screwing your suppliers." It appeared to be "a normal business negotiation." Both sides wanting a deal in their own best interests.
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Not really. Normal business negotiations tends to be lets find a point where we are both are satisfied. Sometimes, companies are willing to take a short term loss to enter into a market, with the idea that they will eventually raise prices. Amazon did that in the ebook trade by running the $9.99 price on best sellers as a loss leader to get people into the habit of buying ebooks from them. What is going on between Amazon and Hatchette is that Amazon is trying the leverage their dominate market position to force Hatchette to chose between two losing propositions, sale their books at a loss to Amazon, or be locked out of the ebook market.