Net Best Deal

Problem #2: Why are there resellers who are selling products at prices lower than the retail prices? Are they EVEN allowed to do that? And what do I do?

Solution: This is a common case scenario especially more prominent in the Internet Marketing niche itself. It’s also very evident on auction sites such as eBay.com where you find resellers selling “supposed” $97.00 digital products with Master Resell Rights at ridiculously low prices like $3.99 or even $0.99.

Now are they even allowed to do that? Unfortunately, yes. Here’s why:

http://en.wikipedia.org/wiki/Price_Fixing

Here are some parts of the article you should pay attention to:

Generally, price fixing is illegal, but it may nevertheless be tolerated or even sanctioned by some governments at various times, particularly among those whose countries are developing economies.

Also:

In countries other than the United States, Canada and within The European Union, price-fixing is not usually illegal and is often practiced.

In short, enforcing a form of price fixing is generally illegal in the United States, Canada and a host of European countries. So even if the product author sets a rule like “you cannot sell this product for under a specific price”, resellers are still allowed to “legally” break that particular term.

This may differ in other countries, but as long as your main market are in these countries (and that’s where most of the customers/consumers are), the “no price fixing” rule applies.

In the case of selling digital products i.e. E-Books, software, templates, etc. it takes virtually nothing to re-create and stock them. And whenever a seller makes money, the profit is usually clean, less the merchant transaction fee.

Thus many a reseller can set their prices at will on digital products with Master Resell Rights.

So what do you do? First of all, think abundance. Yes, that’s the key you’ll need to unlock yourself out of this price war.

The good news is that most of these desperate, uneducated resellers are often poor at traffic generation and marketing. Setting up your sales page with order link ready isn’t the entire ordeal.

And the reason I call them “uneducated” is because… hey, does it take a lot of education to set up a sales page and order link and then sell your product at the price of candy bars?

Making big bucks does.

Also, it’s THEIR problem, NOT yours. They will have to live with the consequence of earning little (can you get rich selling things almost free?). You focus on making money for yourself.

Don’t be afraid to go as high ticket as possible. Since it takes equal effort to sell something and new people are going online everday by masses, why not sell as high and many as possible and make more bang for the buck?