I just saw a commercial for an Odd Lots, where they get close out stuff from mail order catalogs. The guy said they sell them “at prices so low, we can’t mention their names.” I’m assuming he means the mail order catalogs, not so much the items themselves.
What prohibits them from mentioning their names?
Some manufacturers prohibit advertising their items at below-list prices. (Some prohibit even selling it below list.) Sometimes they are upscale and don’t want to tarnish their image by offering discounts.
In theory, it’s because the prices are lower than the manufacturer would approve of, and they are not able to mention them in case their contract of supply is withdrawn (yes, some manufacturers impose minimum selling prices on their products to maintain image or value of the brand).
In practice, it’s likely to be just a trick to get you to visit the place and find out what is so special about their prices; once you’ve actually gone there, you’re more likely to buy something.
If my memory serves me correctly. . .
A supplier cannot dictate the price at which a product will be sold after the suppiier has sold it. That was found to be illegal. “Fair Trade” laws were struck down. In other words, once the retailer owns the product they can sell it at any price they want. That’s why you see “suggested retail price”.
A supplier is not required to sell to anyone. A suppier can refuse an order. Manufacturers will keep their prices supported by limiting supply. iPod is a perfect example. You do not see price wars because if a retailer starts cutting prices Apple can divert their limited supply to other retailers that are maintaining the prices. To attract iPod order a retailer will give an added value offer like a case but will not cut the price by more than a couple of dollars so that they don’t jeoprodize their supply.
A lot of dynamics come into play. Some suppliers don’t care about the prices, they just want to move the goods. Some want some price support so they “request” that a low price not be advertised. Others, like Apple, can afford to make sure that their prices are supported.
It was discussed here recently.
Tell that to the Chanel No. 5 people or That Famous Russian Crystal Maker ™.
Maybe, but mail order houses also do it. The photo houses are notorious for this. You know the ones, pick up a photo magazine and the first 20 pages are magazine and the next 100 pages are ads that shout “Call for price!” on the one item you’re interested in.
Some of these places are very slick at a barely legal bait & switch game and it’s amazing how you think you can resist a sales pitch over the phone but once you hang that phone up you realize you’ve just bought something. So maybe they do want to get you to call just to have a shot at getting your money.