What is the name of your state? Texas
We are a computer software reseller. We resell software from certain manufacturers that we buy through a distributor. All resellers at our level get 30% off list price and can mark down as they see fit. The distributor gets an additional 3% off the price to allow for the storage and delivery of the software. The distributor can pass on some or all of those points to the reseller if they see fit and this is not uncommon.
Now, sometimes there are resellers who will sell at more than 33% off which is below cost for anyone. They will take a loss on the deal to keep the customer in hopes of obtaining other business. The problem is that these VOLUME resellers sell so much and so many products to customers that they can afford take this loss on certain software products. I believe this to be unfair practice. If they continue to sell software at below cost then it
affects the business of legitimate resellers like ourselves.
Isn't there a law about "selling below cost"? Didn't Wal-Mart run into this situtation years ago with the smaller businesses? If there is a law is it applicable at the Federal or State level(Texas preferrably) or both? I just want to see if there is a way to stop this "below cost selling".
Any information is appreciated. Thank you.
We are a computer software reseller. We resell software from certain manufacturers that we buy through a distributor. All resellers at our level get 30% off list price and can mark down as they see fit. The distributor gets an additional 3% off the price to allow for the storage and delivery of the software. The distributor can pass on some or all of those points to the reseller if they see fit and this is not uncommon.
Now, sometimes there are resellers who will sell at more than 33% off which is below cost for anyone. They will take a loss on the deal to keep the customer in hopes of obtaining other business. The problem is that these VOLUME resellers sell so much and so many products to customers that they can afford take this loss on certain software products. I believe this to be unfair practice. If they continue to sell software at below cost then it
affects the business of legitimate resellers like ourselves.
Isn't there a law about "selling below cost"? Didn't Wal-Mart run into this situtation years ago with the smaller businesses? If there is a law is it applicable at the Federal or State level(Texas preferrably) or both? I just want to see if there is a way to stop this "below cost selling".
Any information is appreciated. Thank you.