When Inflating Prices Makes Sense

Tim O'Keefe 

Sony has banned  retailer discounts on some products.(NRF Smart Brief/ The New York Times/Bits blog (11/20)

The company hopes that  the move, which applies to high-priced products such as its Alpha digital cameras and high-end televisions, appeals to busy shoppers by eliminating the need to search for deals among retailers. The moratorium on discounts follows a Supreme Court decision last year to loosen antitrust regulations that prevented manufacturers from dictating retail prices. 

This is interesting to me. Initially, one might say they are crazy in this environment to not lower prices. But by making it easier to purchase by stripping away comparison shopping they may actually increase volume sales. Time will tell if this is brilliant or not.

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