Quote:
Originally Posted by jj20x
I very much doubt that VM offer loyalty discount at a loss. Consider the discounted price as the one that gives VM a profit and the advertised price as the one that gives VM an excess profit.
Companies generally like to fragment the market, as much as possible, to get as much profit as possible from individual consumers. Those willing to pay the advertised price simply generate larger dividends for the shareholders. Those on a loyalty discount make less profit but without driving up the price for other consumers.
At the end of the day, the customer has a choice. To negotiate for the best price or to accept the advertised price and generate larger dividends for the shareholders.
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Nicely put, i agree 100% with that.