Mikes Cigars loses Oliva.

[jaymz]

Originally Posted by SeanGAR

Some competitor squealed on Mike's and complained that they were undercutting their price. I prefer capitalism and competition in the marketplace, not communistic pricing practices. I won't buy more Olivias as a result of this, but I doubt that will make a dime's difference in their bottom line. I really don't care, it is the principle.

What is good for the consumer and the economy is that companies obey the contractual agreements that they are legally bound by. In a capitalist system, Oliva has the right to sell their products at the price they determine is good for their company. They also have the right to require certain concessions be made by the retailer carrying their wares. The retailer also has the right to not agree to those terms, and refuse to stock Oliva's product. If what the OP said is true, Matt's Cigars got caught violating a legal contract multiple times and got slapped on the wrist for it. This was dishonest business practice and should be discouraged. If a company is willing to defraud a company as large as Oliva, how honest do you believe they will be in their dealings with you as a customer. I as a customer will be thinking twice about purchasing anything from Mike's Cigars in the future.


(FYI - in a communist system, the state would own both the cigar manufacturer *and* the retail outlet, and the employees would receive whatever money the government felt like doling out to them)