Beating a price?

Question

Some retailers guarantee they will beat any price if their price is not the cheapest (sometimes they'll beat it by more).

For example, a hardware store sells a lawn mower for $300 with a 'cheapest price guarantee' and they will beat any cheaper price by 20%.

If I were to suddenly set up my own business and I purchase several of these mowers and sell them at a price of $1, will the hardware store STILL beat the price by 20%, meaning I can buy it off them for 80 cents? Also, let's just say my business is not advertised (but still a business nevertheless) and so, very few people, if not, no people will buy these mowers off me as they are unaware my business exists.

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Will they beat the price?

Answer 1

When I worked for a pharmacy that advertised 'beating the competition's prioce', it had to be a certain mileage away.  If it was more than , let's say, 20 miles away, no deal.  If your competition saw your selling price, they may weasel their way out of selling a mower for $.20

Answer 2

I don't think so ,there must be way's to protect against a scheme like that,but good luck