Posted 7/27/2007 18:41 (#179302 - in reply to #179280) Subject: Re: Is this Price Fixing?
What this really tells me is that Monsanto is trying to eliminate price only dealers. They can't grow in this type of situation with out changing they way the do business. This allows existing full service dealers to make a fair margin for any extra services they may provide with out fear of loseing customers on price only. Price only dealers living off the backside money will now compete on a more level playing field. A full service dealer can still get grow because they have an upfront margin to offset the loss incurred by loseing the backside money for a short period of time. Economics would tell you that if Dekalb has the highest yields and is gaining market share at a rapid rate then the price can be higher. Monsanto is trying to position Dekalb as a premium product. Premium products command more money and have premium service to go along with it. If you want to buy seed at the cheapest price then I believe Monsanto's stance is that ASI companies are what's available to you. Monsanto is at a place where they don't have to give Dekalb away anymore to increase market share.
Is this Price Fixing?
