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Originally Posted by pwalker8
Agency hardly shutdown loyalty programs. Unless it's written specifically in the contract (which I do not believe was the case), there is nothing that prohibits a reseller from implementing a host of tried and true loyalty programs, such as store credits or discounts. Agency simply says that the publisher sets the price and the reseller gets a percentage. Amazon could do a buy 2 get 1 free, get 10% off all purchases and that sort of thing.
What Amazon couldn't do is targeted discounts, i.e. 10% off a specific author or publisher. Amazon likes to micromanage it's discounts, trying to push customers to specific purchases. Agency doesn't support that model of discounts.
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Quote:
Originally Posted by pwalker8
Once again, agency pricing doesn't prevent loyalty programs. It may make some loyalty programs less economically attractive, but it doesn't prevent loyalty programs
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As soon as agency started, coupons on the big publishers stopped working and loyalty programs stopped working for the big publishers.
Loyalty programs and coupons in general didn't stop, they just stopped for the big publishers. No discounting of any type was allowed for big publishers.