Regional Monopolies
By James Phillip on Mar 13, 2008 in Business, Smart Business
In a recent article I talked about setting up a high end audio system for your PC. As I searched for speakers that I wanted to demo I came across a couple of brands I wanted to hear. Along with that I wanted to have a couple of places to get quotes from so the best price could be found.
I do a search in my area and come across 3 dealers. They are all owned by the same place and no other dealer is in my area that carries those speakers. So I get to thinking, what a slick way to make sure you get a premium price for your product.
Now this cannot work with everything but if you are reselling a product and can purchase a “zone” then why not game it up and set up several stores. Once you set in place a great plan you should have trapped a geographic area to either buy from you or force them to drive 30-40+ miles if they want to deal with someone else.
You seen many warnings on company sites that you will not get a warranty if you purchase from an Internet reseller and you clearly know why now. I cannot really find those speakers online and I really don’t want to drive over an hour to “try” to save a few bucks so what can I do other then pay up or chose another brand?
Aggressive business so you have to love it, unless your the one buying from a regional monopoly.
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