Keeping a Secret

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12-18-2008, 01:26 PM
Pirate

Keeping a Secret

I would like to start a new E Commerce business selling a very common completely legal product. However, some of the larger more popular manufacturers insist that their product be sold at the "manufactures suggested retail price". My idea is to sell these products at a greatly reduced price and rely on volume instead of the usual 150% profit. My question is how can I disguise my computer address to curious competitors so they do not try to force me out. I am also concerned not so much as to any legal problems associated with offering the consumer a discounted price, but in the E-Commece world, is my proposal considered "bad"? I honestly believe that free trade should be just that and not dictated by someone simply for "snob appeal." Can anyone steer me in the right direction?
12-18-2008, 02:53 PM
JEccles

The pricing structure you are referring to is called MAP pricing. There are legal and ethical ways around it - coupons, specials etc... without having to resort to breaching your contract with the manufacturer. As for for disguising your computer - if you hide it from "curious competitors" you will also be hiding it from potential customers. And dont' think that the manufacturers don't check in, particularly on new distributors.

All in all I do not think it is ethical to proceed in that way - the MAP pricing is put into effect to "level" the playing field (so to speak) so that everyone can get a piece of the pie, and I do not think that in the long run you will profit from it.
12-18-2008, 05:32 PM
BasicECommerce

Quote:

As for for disguising your computer - if you hide it from "curious competitors" you will also be hiding it from potential customers.

This is true and should be taken seriously. The last thing you want is to be invisible.

There are plenty of ways to get around MAP pricing. Some are clean, others are dirty (or unethical as JEccles said).

-BEC
12-30-2008, 11:13 AM
marc77

Quote:

completely legal...usual 150% profit

Please tell me which legal product has a profit range of 150 % :-) (I'll keep the secret)

Quote:

if you hide it from "curious competitors" you will also be hiding it from potential customers.

Even more, you will appear dubious to potential customers. That's the worst thing that can happen to you.

Quote:

And dont' think that the manufacturers don't check in, particularly on new distributors.

You may be surprised how reliable advanced image recognition (e.g. article pictures) works... it's used mainly by product piracy investigators to find product imitations. But it can be also used to keep an overview about the market.