Can a company sell the same product at different prices?

Can a company sell the same product at different prices?

When a company sells the same product for different prices in nearby markets, it is called price discrimination.

When a manufacturer sells the same product at two or more different prices it is called as?

Price discrimination occurs when identical goods or services are sold at different prices from the same provider. There are three types of price discrimination: First degree – the seller must know the absolute maximum price that every consumer is willing to pay.

Can a company sell another company’s product?

Generally, it’s not illegal to resell an item that you have legitimately purchased. Once you have purchased something at retail it is yours to do with as you choose. Manufacturers tend to have little or no control over a product past the first customer they sell to.

Can you rebrand a product?

To do this legally, you should be getting permission to rebrand another’s product as your own and this is typically done through the use of a “White Label Agreement.” A white label product is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if …

Is it legal to charge different prices for the same product?

Price discrimination is the practice of charging different persons different prices for the same goods or services. Price discrimination is made illegal under the Sherman Antitrust Act. Merely charging different prices to different customers is not illegal, when there is no intent to harm competitors.

Can you sell the same product under different names?

A product line is a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.

Is selling one product as another product?

Cross-selling is the action or practice of selling an additional product or service to an existing customer. In practice, businesses define cross-selling in many different ways.

What is it called when a company sells other products?

A white-label product or service is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if they made it. Investopedia’s description: A product manufactured by one company that is packaged and sold by other companies under varying brand names.

Is it illegal to sell something at a higher price?

Generally speaking, it is not illegal to buy a product and then resell it at a higher price. Normally, you can resell most physical items unless they are illegal or prohibited. In addition, during the resale process, you may also need the manufacturer’s authorization, otherwise, the resale business cannot be completed.

How do I get permission from companies to sell their products?

Introduce yourself and explain that you are writing to request permission to sell the company’s products in the first paragraph. Briefly indicate your reason for wanting to sell the company’s products and the specifics of how you’ll sell the items.

Is it illegal to repackage and sell a product?

Unless you have a written agreement with the original manufacturer to repackage and rebrand their product, the answer is yes on both counts. Most manufacturers take a very dim view of such practices and will usually press legal action if you are caught. The resulting financial penalties can be severe.

Is it legal to relabel a product?

Any company can relabel products and sell them under their own brand. However, there are typically two groups where relabeling is seen as a more frequent activity: 1. Taking an existing product and relabeling it is an instantaneous business opportunity.

Can a firm decide to sell the same product to different consumers?

Therefore, the firm can decide to sell the same product to different consumers at different prices. This way, the firm can therefore mitigate the loss from the consumers who charged the low price by selling to consumers who can therefore afford the high price.

Is it legal to have multiple wholesale levels of sales?

Yes it is legal (in the US and Canada anyway) and extremely common. I recently sold a manufacturing company, and we had 7 different wholesale levels. We based it on previous sales volume, as well as potential sales volume, and also how well the buyer ‘sold’ us on giving their company a better deal.

Can two companies purchase the same quantity but get different prices?

Sometimes two different companies would purchase the same quantity, but get different pricing. This happened not out of a plan on our part, but because one of the companies was a more aggressive negotiator than the other.

Can a parent company sell its parts to a subsidiary?

A: The transfer of parts from a parent to its subsidiary generally is not considered a “sale” under the Robinson-Patman Act. Thus, this situation would not have the required element of sales to two or more purchasers at different prices.