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Why can't "how it works" be discussed publicly??? I would sure like to know!
It is also not correct that "one can't cut prices drastically" because they will cause someone else to go out of business. The soft glass rod business is all about putting the small vendors out of business. Small vendors have limits on what they can buy and a lot of the times can't get all of the newest colors.
One vendor/importer has been the leader of cutting prices 50% or more. That is a definite attempt to put other dealers out of business. I know that for sure because I was told to my face that there are "too many dealers." Businesses have been putting other businesses out for years. They can do it based on price or better service. Or maybe because they control the market which probably IS illegal if someone wants to take the time to fight with them.
My suggestion is that one dealer has too much power in this particular marketplace. If I were CiM I would want to keep all of my dealers happy. Once the smaller dealers are gone you can bet that will be the end of half off and free shipping promotions and your prices will be higher than ever! Just look at where they were before the economy crashed when you couldn't get a discount until you bought 20 lbs. Does anyone remember that besides me?
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As I said, it was an extremely broad definition of why prices are as high as they are and I specifically mentioned the two CIM wholesalers. Frantz is selling similar kind of like Walmart. They're big dogs, they buy in HUGE mega bulk at the lowest wholesale price and they can afford to sell it cheaper as a result. But they're still not cutting their prices so low that nobody can compete with them. It's a fine line. And I am not explaining it very well.
I think it's called predatory pricing. 90% of it is legal, again the Walmart analogy. But sometimes it walks a very fine line. My point being: once pricing has been accepted, it's generally something that is very difficult to drop back to former prices. And you're right. Sometimes it's not worth the person's fight to take it to court.
I'm not promoting Frantz or Ed Hoy. I buy local. I buy my Tag from you Paula because you have the odd lot TAG and you were the first to offer Wicked and Seaweed. It sucks. But unfortunately Sue was correct. It's supply and demand.
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