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Trading Posts

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June 1985, no. 71

Trading Posts

by
June 1985, no. 71

In the USA recently a group of booksellers brought an action against the publisher Dell. They alleged discriminatory trade practices in that Dell supplied chain store booksellers and supermarkets at discounts greater than those granted to independent retailers. In its defence Dell argued that the massive cost of representation to the many scattered independents precluded the allocation of increased discounts.

Representation – the man or woman, car samples, jackets, knowledge, persuasion, trust and chutzpah which in Dell’s calculations added up to an expensive but essential function.

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