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Why do businesses sometimes offer products at a special lower sale price?
Wiki User
∙ 9y ago
There are several possible reasons.
One is to get rid of old stock. When a new model or version of a product is introduced, it can be quite difficult to sell the old version. Businesses have money tied up in the stock of these old items so holding on to these products has a cost to the business. There may come a time when it is better to sell the products at a lower price than continue holding on to them.
Sometimes some products are offered at a lower price to attract customers into the store. The expectation (hope) is that once the customers are in the store, they will also buy other products - quite possibly ones where the profit margin is greater.
Another reason is to destroy competition. If you are running a business supplying some commodity and suppose other businesses enter the same market. You could start selling your products at a price where the profit is very low or even negative. Competitors will have to match the price (since it is a commodity) and, provided you can maintain the low price longer than they can, you will bankrupt them. In many cases this is not legal, but that depends on the law proving it.
Wiki User
∙ 9y ago
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price fixing
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The product may not have any zeros if there are "carries" from a product at a lower level.
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Competition will lower the price of products
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Why did businesses to move in the south?
Labor costs were lower because unions were weaker.
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competition leads to lower prices
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Labor costs were lower because unions were weaker.
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bette quality for lower price
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Wages in the south were lower the wages in the north
