Quote:
Originally Posted by brecklundin
Why was it a mistake by Fry's? They paid Astak, then they get to sell for whatever the heck they want to. Astak has no say in the matter.
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I agree with you on the fact that, once they have the contracted rights to sell the EZR, the price is up to them (if not contractually bound otherwise).
However, Astak (in my opinion) made an error with the agreement. They didn't know that Fry's would put the price so low, or had assumed that they would at least have it up to the point where they would at least profit by it.
Robert didn't give price specifics, but he did hint around that Fry's was selling the units for less than they were paying for them. This not only lost Fry's money in unit profits, it also took sales away from Astak itself, as people would rather order from Fry's than from the distributor. The only good thing that I can see in Fry's actions was to increase sales, even though profits sank. It's all about the numbers.
Maybe any further agreements with Fry's, or such, include a clause concerning price, limiting the lowest price, as well as possible frequency and length of sales. It might deter some sellers, but over all, it might be best. After all, They may be limited to selling it for, say, no lower than 219 or such, but they can bundle the unit with whatever they desire.