Re: "Retail Value"


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Posted by Bob on August 20, 2001 at 12:14:16:

In Reply to: "Retail Value" posted by Stefan Kac on August 19, 2001 at 00:28:11:

Some years ago, certain manufacturers would force retailers to sell at a specified price called the "fair trade price". This eliminated competition amongst retailers and assured a good profit. The Justice Department took a dim view of this and it was challenged and overturned in court. The "Suggested Retail Price" is the last vestage of that practice but its purpose is to entice the buyer into thinking that the real price is a very good price. Good examples are automobile sticker prices, airline full-fair ticket prices, hotel rack rates (look on the back of the hotel room door)etc. Traditional retailers (department stores etc.) have another form of it where they post prices and then have sales. The name of the game is "charge what the buyer will pay."

As you have learned, a bit of research can save you a lot of money.


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