True, but you make it sound as if the LCS is being greedy, while the big company is being generous with low prices. Nothing could be further from the truth.Well, if the "LCS"s would lower there prices to be competitive,
they would get more business. I don't need the advice of a LCS
since I do so much online research and hands on experimenting
before I purchase a camera. But I would definately purchase from
one if they lowered their prices.
Not all of us are wealthy. Saving $100 makes a big difference for me.
The small company must sell at a certain price point, determined by their limited sales volumes and limited ability to buy in bulk. The big company arranges a massive purchase of just a hadful of popular items, sells them at very low margins (or even at cost or at a loss) in order to gain market share and take business away from the smaller businesses. After smalller businesses go out of business (known as a "shake-down" in business-speak) then the big company is free to set prices as high as they want, since they no longer have competition, and small business entrepreseurs will think twice about going head to head with them, inlight of their past tactics.