I notice that the major cycling websites (e.g. Evans, Tredz, Wiggle) have got price match schemes (meaning that they will match the prices on a list of websites). Now, this sounds like great news for the customer - they will reduce their prices to match other websites. Surely this will mean we all get cheap, cheap stuff! But in reality, it actually reduces the ability of the websites to compete on price. Without a price promise, if they put their prices down, then they are going to get more sales from people who shop around. Now, if they put their prices down, they will not get any more sales, as someone can get that same price from another site, so they have no incentive to actually order from the website that reduced its price. They might as well keep the price the same and focus on other aspects, like having an easier website, free postage, delivery times, customer service or range of products.
I haven't really got a conclusion, but just thought people might be interested that the major websites are almost starting a cartel.
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