|
Retailers want to maximize profits but suffer from price competition. Consumers are notoriously fickle and will buy from the lowest priced retailer most of the time. If the retailer sets the prices too low, they don't make a profit and go out of business. Amazon is willing to take a loss on bestsellers in order to establish a market presence. Meanwhile, other retailers scramble to try meet those prices or at least give the illusion of doing so.
From my personal experience in dealing with wholesalers for my home business retail prices are a suggestion but few allow you to advertise at lower than suggested retail prices. In most cases the wholesaler is trying to protect all their retailers especially the smaller bricks and mortar operations who have far different expenses than an online retailer has.
|