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i'm not sure actually if most people would agree that loss leader strategies are anticompetitive :bunhdthink: i would imagine every console company would fight you if you tried to stop it
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@lain @icedquinn eh?- big pays less for components and assembly- sets lower price than competitorsdoesn't work?
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@icedquinn i think people mix up loss leader strategies with 'predatory pricing', that is, underpricing the competition (which doesn't work), which is generally seen as anticompetitive.
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@lain @icedquinn always thought that's what it means, predatory pricing; big erases smalls by buying in bulk / getting the deals
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@shmibs @icedquinn no, being cheaper than the competition does work of course, what doesn't work (or rather, is irrational and has no chance for being worthwile) is pricing your product below your production cost to corner the market.
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@lain @icedquinn so the one with "loss" in name involves no losses, and one without does?
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@shmibs @icedquinn no, it means pricing below your own production costs, so you actually make losses while doing it.
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@lain @icedquinn so then what i was talking is neither "loss leader" nor "predatory pricing"?
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@shmibs @icedquinn loss leading involves losses too, but the goal is different, it's to induce the customer to make follow up purchases that are not losses, for example, giving away razors and selling razor blades, or having a 'one burger one dollar' special for the first weeks after opening a restaurant.
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@lain @icedquinn thought it was "predatory" because unidirectional, leaving small no chance ou compete
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@shmibs @icedquinn no, that's just regular competition.