Re: How Book Publishers Can Beat Amazon

There's just the wee little wrinkle that volume discounts are a legal
defense to Robinson-Patman accusations. And if you can demonstrate to me a
book retailer who moves more volume than Amazon, I'll eat my hat.

From
http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman

Q: I operate two stores that sell compact discs. My business is being
ruined by giant discount chains that sell their products for less than my
wholesale cost. What can I do?

A: Discount chains may be able to buy compact discs at a lower wholesale
price because it costs the manufacturer less, on a per-unit basis, to deal
with large-volume customers. If so, the manufacturer may have a "cost
justification" defense to the differential pricing and the policy would not
violate the Robinson-Patman Act.


On Tue, Jun 3, 2014 at 1:05 AM, josephHarris joe9438-/[email protected]
[ebook-community] <[email protected]> wrote:

>
>
> Chris,
>
> You are spot on, of course, with that comment. But there is more to it
> with Amazon. I've now understood the purpose of the Robinson-Patman Act in
> the US, which has been ignored. This article discusses it:
> http://america.aljazeera.com/opinions/2014/6/amazon-books-hachetteantitrustbusiness.html
> .
>
> That doesn't alter the distribution point you soundly make. But that is
> also why no single company should be permitted to concentrate distribution
> into itself. Another law area ignored with Amazon [and maybe Google] seems
> to be the anti-trust one.
>
> Joseph
>
>
> On 02/06/2014 21:36, 'Chris Smith' [email protected] [ebook-community] wrote:
>
>
>
>
> So publishers want to sell something in return for money? Welcome to
> Retailing Business 101.
>
> It's been like this for a very, very, long time - but maybe just not for
> publishers.
>
> http://www.fastcompany.com/47593/wal-mart-you-dont-know
>
> What I saw in your article was publishing companies that seem to have
> skipped over the lesson about diversifying their distribution, and the
> risks of not doing so. Fixing that has always been something within their
> control.
>
> josephHarris joe9438-/[email protected] [ebook-community] wrote:
> >
> > How Book Publishers Can Beat Amazon
> >
> > By BOB KOHNMAY 30, 2014
> >
> >
> http://www.nytimes.com/2014/05/31/opinion/how-book-publishers-can-beat-amazon.html
> >
> > "But there was a problem. When a company has dominant market power and
> > sells goods for below marginal cost, it is engaging in predatory
> > pricing, a violation of federal antitrust laws"
> >
> > "All was well until the Justice Department, supported by a white paper
> > supplied to it by Amazon, filed an ill-advised lawsuit against Apple and
> > five of the major book publishers for antitrust violations."
> >
> > In tune with my comments over the past few years on these topics.
> >
> > Joseph Harris
>
>
>
>
> 
>



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