Originally Posted by ljocampo
You don't raise prices to be competitive. You discount prices to be competitive. The practice I mention is to get more profit out of higher income regions from online buyers, even when they don't live anywhere near your place of operation. It was considered illegal, or at least a no no, when the Internet marketplace began, but like with everything else when people aren't willing, or too lazy, to complain about something with their wallet, it just allows retailers to become more brazen in their greed. Aren't you the one who is always calling out Apple for their greedy practices?
It was never illegal to have a different price in different states. But feel free to cite a law that supports your contention.
You keep making claims that are absolutely wrong. I would suggest that you learn something about the topic before commenting further.
Originally Posted by ljocampo
With this interpretation there is no such thing as collusion in pricing since it's just good business practice. I still disagree with you and I have to add that it's people like you that keep the practice going. Apple should make sure you are sitting on the jury. As a consumer, I believe a major retail outlet, online or not, should set a price for a product that they believe the whole market will bear. If they want to discount the item, fine, but raising the price just because of economic status in different regions should be illegal. Would you be so agreeable to this pricing scheme if the federal government set their income tax rate higher in different regions of the country? I don't need proof to know this is happening. I've purchased enough items online to know it is, even when cynical people like you try play the confrontational game.
"Law . a secret understanding between two or more personsto gain something illegally, to defraud another of his or herrights, or to appear as adversaries though in agreement:collusion of husband and wife to obtain a divorce."
It's really quite simple. If there's a secret agreement, it's collusion. If the parties simply do something on their own (or even copy public information), it's not collusion.
Your suggestion that prices should be the same everywhere is inane and suggests a complete lack of understanding of business.
Businesses exist to make money. There is nothing illegal or immoral about what you suggest. If customer A is willing to pay more than customer B, a business is perfectly free to charge customer A more. It happens all the time.
Furthermore, there are many legitimate reasons why companies charge more in some areas than others. Just a few possibilities:
- Cost of doing business (rent and employee salaries vary, you know).
- Shipping costs
- Return rates (which can vary by state)
- Regional preferences (it would make little sense to stock a lot of parkas in Florida, so the cost might be higher because of reduced turnover)
- Accessibility of local warehouses
- Purchase volume
- And many more
If you want to create a business that operates on the principle of "everyone should pay the same", feel free. Just don't assume that your view is something that everyone else should be expected to follow.