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Originally Posted by DiapDealer
Yes. It's called basket pricing, as has been mentioned many times. A perfectly legal and non-nefarious practice for anybody except for Amazon, apparently. I also find it hard to believe that Amazon was paying more than mere pennies above $9.99 for those ebooks.
I certainly do. Any blanket claims of "losing money" without mentioning the fact that they were talking about pennies on particular titles (and that their ebook business always operated in the black on the whole) is misleading at best. So yeah... I find any notion that "Amazon's 'lose money to buy up market share' campaign" is the same thing as "Amazon was selling 'certain' new releases and best sellers at a price that 'roughly matched,' or was slightly lower than, the wholesale price it paid to the publishers..." to be a huge shift. And disingenuous to boot.
But if you want to say "losing money" and "flirting with no margin on limited items" is the same thing. Have at it.
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In my business wholesalers always claim to sell to small and large retailers at the same price. Technically that is true. Take Seiko. They invoice their merchandise to everyone at the same price. But, large retailers, think Zales, Kays and Jareds, get large discounts off the back end. And by the way Zales, Kays and Jareds are all owned by the same corporation ( Sterlings) which is owned by Signet.
Apache