Quote:
Originally Posted by Justin
I should point out, from a business perspective, no one should lower prices on salt, or any essential item for that matter. People need it, they have to buy it, so they will pay what it costs. If no one slashed the prices on essential items, retailers would make thier money on the essentials, which would bring down the cost of extra equiptment we all know costs too much.
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Welcome to free enterprise. The fact is that someone WILL lower the price (salt, computer, TV, car, couch, food, etc) and people may buy because of it. Retailers will employ whatever strategy they believe will give the best combination of profit and/or market share. Every market has discount sellers and premium/quality outlets and there is room for both. I am sure that no retailer likes being undercut by a competitor but they can be assured of 2 things; it will happen and they choose how to respond. Price cutting is not the only business model. It does not make competitors go out of business. Competition is healthy, the retailer who can't compete isn't any better for the market than the discounter may be viewed (by "compete" I don't mean price). Ultimately the customer decides on any retailer's perceived value. No one can artificially set price/value or quality/value standards and think it is good for the market. If the discounter can't make a profit and goes out of business then their business model was wrong. If a retailer believes their premium level of expertise/support/product is worth more and the customer does not then their business model is wrong. If educating customers advances the market (hobby) so that quality is recognized and valued then the premium vendors gain an advantage.
Just my $0.02