[BBLISA] 30% Apple

Arthur Gaer gaer at math.harvard.edu
Mon Feb 21 21:13:42 EST 2011


On Feb 21, 2011, at 6:24 PM, Josh Smift wrote:

> DA> Actually, Home Depot does get a commission of about 30% on every
> DA> hammer sold. Of course, they truck it, warehouse it, label it, insure
> DA> it, handle it, expense damages and theft, take returns and provide
> DA> customer support, thereby reliving the manufacturers of a significant
> DA> expense of building a material distribution and sales system.
> DA>
> DA> What does Apple do for the developer?
> 
> Apple may do a lot for the developer (or they may not), but the real point
> is that what Home Depot *doesn't* do is tell the hammer manufacturer that
> they're not allowed to also ship hammers to Ace, Lowes, some guy with a
> roadside hammer stand, and sell them out of the hammer manufacturer's
> mom's garage, and prohibit any of those people from charging a lower price
> than the price offered at Home Depot.

Actually, Home Depot does carry items that can only be bought from Home Depot and no other retailer.   Many retailers have similar deals with specific suppliers.

And many suppliers have deals with retailers that require that the retailer not advertise their product below a specific designated price.

Arthur


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