Unethical Price Strategy?

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PianoAl

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I read an article that suggested that one day prior to offering a free promotion on Amazon, you raise the price of the book, so that customers will think they are getting a good deal. For example, raise it to $6.99 from $2.99.

That strikes me as unethical, and even illegal (I recall a law that doesn't allow you to advertise a price break unless you actually sold the product at the higher price).

What do you think?
 

Hoplite

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I know there are laws prohibiting that kind of practice in retail stores, but I don't know if they would apply to online sales. I would assume yes.

I think that's an unethical move at the least, and one that could cost you customers (as in anyone, not specifically you PianoAl) .
 

nkkingston

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The ol' DFS sale :) Somewhere out there is a mythical store selling those sofas at full price, so every single other store can offer them at half price.

According to gov.uk (PDF link), the 'comparison' has to be to the price advertised immediately before, it has to be available at that price for at least 28 days or more, the discounted price should not be available for longer than the undiscounted price, and comparison should not be made with prices offered more than six months ago. The same still applies under distance selling regulations, with the additional note that if making comparisons between prices on different sites (say, between your own and Amazon) you have to be explicit about it. It doesn't specify about digital goods, but it definitely applies to physical goods sold online.

It's the sort of practice that a lot of small fry probably get away with, and may even pick them up a few new readers. The more interest they attract, though, the more people will be annoyed, and sooner or later they're going to ignore someone who knows the law and is more than happy to report them for it.
 

Jamesaritchie

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Ethics aside, that strikes me as thinking the buyers are really stupid.
 

Torgo

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It's a bit sleazy, and as Hoplite and nkkingston point out, it may actually be illegal (though your chances of being done for it are small.) The sleaziness of it is really what ought to give you pause.
 

PianoAl

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Right. It is essentially a lie -- I'm not going to do it.
 
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