Wal-Mart and Amazon Compete By Lowering Book Prices To The Point Of Loss

Wal-Mart and Amazon.com are lowering prices of new, hardcover novels from best-selling authors. Some novels are getting prices as low as $9 while others are seeing prices cut in half. One wonders if this isn’t a throwback to Wal-Mart’s old tactics or running a competing retailer out of business, but will this work against Amazon.com?

Wal-Mart and Amazon both offer additional products so they can afford to lower the prices on books because they will most likely make up the revenue in other areas. The majority of consumers will buy one of these discounted books at Amazon.com or at a Wal-Mart location and then continue to shop and purchase other merchandise before leaving the store or website. Both Amazon.com and Wal-Mart offer a variety of additional services and incentives for shopping so is this price war going to help either company?

It is certain though that companies are affected by these book antics as smaller bookstores suffer and watch their profits fall. When Wal-Mart or Amazon.com undercut prices to the point that they take a loss in that area there is nothing booksellers can do to compete. If bookstores see that Wal-Mart and Amazon are lowering prices on books, new books for that matter, to $9 or $10 on book that was originally $20 or $30 then there is no way that smaller bookstore can compete.

There are those who are on both sides of the argument saying that in our economy the strongest survive and have a right to squash competition but there are those who say this old idea is wrong. Are these large companies like Wal-Mart and Amazon.com not infringing on small business owner’s right to exist? Also, what is the point of lowering the prices of products to the point that the company isn’t making a profit or losing money?

The idea of limitless success in our nation is the American Dream but when does a company, who can easily destroy smaller businesses by lowering prices to ridicules rates; when does that company become a monopoly? Should actions take place to stop such practices or is it the right of a business to set a price no matter the consequences? This Catch-22 situation is up for debate but until then smaller businesses have to find new ways to simply hold on and try not to sink.

Saving money at WalMart, Amazon.com or any other retailer is very important for Americans.  Some who are looking alleviate a high car payment will likely look for alternative options for transportation.  Some will likely seek a Craigslist Miami Ford F150 used model to help them get around.  Even though gas prices are increasing it is still worth it to have a truck sometimes.