Economics Stack Exchange Archive

Why is the price of industrial equipment obscured?

• posted by: AdamRedwine on 2011-11-29
• tagged: price
• score: 2

I work in an industrial setting and occassionally have to look up information on equipment such as scales, thermometers, industrial clocks, etc. While it is not particularly difficult to find sales brochures of this equipment (provided you know a supplier’s brand name), it seems almost impossible to find pricing information.

I can think of several reasons why this might be the case, for example:

• large industrial companies have procurement departments that are able to negotiate prices
• industrial needs are such that equipment is often customized and the prices changes accordingly
• obscuring pricing produces a barrier to entry for (potentially time-wasting) small buyers
• obscuring procing encourages loyalty from large buyers who become familiar with a supplier’s pricing structure.

Has there been any research on why industrial equipment suppliers obscure prices?

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