How exactly are you planning to drive out all competitors in the market for soap?
For a real life example, the major grocery chain in Australia (Woolworths) did this with milk, selling their brand for $1 a litre, where everyone else had to do $2+ just to break even.
Effectively selling it at a loss so that they get market dominance. They make up the loss on other products in their big chain.
I think there needs to be a break-up between "the retailer" and their home brand being sold there, because it means the profits made on selling the competition works to the home brand advantage.
I think I can guess.
They had to raise their prices so they don't become a monopoly.
Did you guess "there needs to be market regulation and monitoring?" Because: Bingo! You got it!
>[Chairman of the Australian Competition and Consumer Commission] Samuel said the major impact of discounted milk prices appears to have been a reduction in the supermarkets’ profit margins on house brand milk, rather than a gain.
https://www.smartcompany.com.au/startupsmart/advice/startups...
> "Effectively selling it at a loss"
Sure, maybe it wasn't a total loss, just less profit.
>They had to raise their prices so they don't become a monopoly.
You seemed to be suggesting that what was happening with milk was anticompetitive and the consumer protection body got involved to stop it. I pointed out that what actually happened is that the body determined that there wasn't anything anticompetitive going on and that the companies ceased the "milk wars" on their own because they were losing money (which is exactly what I was alluding would happen with soap if one company tried to drive competitors out of the market).
Seems like a big difference to me.
https://en.wikipedia.org/wiki/Herbert_Henry_Dow#Breaking_a_m...
No government intervention necessary!
“IGA coordinates anti-consumer buyout of Woolworths milk”
“Why is IGA skimming your milk?”
“Woolworths vs IGA — Calf scalps bull’s milk”
https://www.upcounsel.com/lectl-california-antitrust-law
> Loss Leader Sales
> The Act also bars "loss leader" sales, defined as sales (1) below cost, (2) to induce, promote or encourage the purchase of other merchandise, and (3) with the intent to injure competitors or destroy competition. Business and Professions Code 17044.
If that were not the case, cell carriers couldn’t sell phones below cost to sell service plans and the entire “razor vs razor blades” model would be illegal.
That also means that game console sales would be illegal.
there is no way Costco isn't losing money on their $4.99 chickens or $1.50 hot dog and drink. and I assume the point is to get you in the door so you will buy other stuff from them and not Amazon or Walmart.
Eventually, they are either sold to Amazon or fold, and Amazon can increase the price to $2.20/bar and mint another $100M/year for the next industry to attack with $1.1B. Rinse & repeat and eventually the customer is charged some percentage more for the same product once the competition is kowtowed.
"Predatory" pricing is not sustainable.
This is a losing proposition for Amazon.
Spread that over its product line, and it is not sustainable.
1. https://en.wikipedia.org/wiki/Unilever
> It is the largest producer of soap in the world,[3] and its products are available in over 190 countries.[4]
https://devblogs.microsoft.com/oldnewthing/20120119-00/?p=85...
https://www.abbreviations.com/term/1424467/customer
(Confusingly, most of the search results I found point at "customer experience" which doesn't fit as well here. I've definitely seen support write about "the CX has an issue with ..." so I'm pretty sure this is a standard term.)