Reply to Re: How do companies make purchases?

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Posted by tony cooper on 06/17/07 17:39

On Sun, 17 Jun 2007 08:54:19 -0600, Scott Bryce
<sbryce@scottbryce.com> wrote:

>Mark Goodge wrote:
>
>> That depends where you are. It may still be legal in the US, but
>> setting a minimum retail price has been illegal in most of Europe for
>> quite some time.
>
>Interesting. So, if I am a small business owner, and my products are
>only available through me, I can sell at any price I want to. How would
>that be different than price fixing? After all, I would be determining
>the price, and nobody could buy at a lower price.

As a sole seller, you fix the price at whatever you want to sell the
product for. That's fixing the price, but not price fixing. The
latter is two or more vendors conspiring to sell the same product at
the same price.

There's nothing wrong with selling a product at the same price that
another vendor sells it for. What's illegal is the agreement between
the vendors. Vendor A can sell the product for $10, and Vendor B can
set his price at $10 as long as A and B don't decide between
themselves to do so.

--


Tony Cooper
Orlando, FL

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