FlyerTalk Forums - View Single Post - US on UA Metal = $30 Less than UA?
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Old Jun 6, 2012 | 12:43 pm
  #5  
WhiteOut
 
Join Date: Oct 2011
Location: IND
Programs: HH Diamond, Emerald Club Exec Elite, Air-Kayaker (former United MP)
Posts: 189
Originally Posted by aacharya
You must have never purchased a cellphone at Staples or wine at a wine shop.

You are correct I have not...I'm a beer/bourbon guy myself...but seriously.

If UA is the 'wholesaler', and sharing their ware for US to sell...what sane business person would allow their reseller to undercut their own wholesaler price?

Perhaps US over-purchased too many UA seats? But if that were the case, I would think UA would simply buy some seats back from US in order to have the lower price, if nothing else than for appearance's sake to the end-users? If this is the reason, it would also mean US did a poor job of estimating how much inventory they would want/need to promote and got stuck over-paying UA for seats they couldn't sell...

Seems like poor planning/execution by both UA and US...and Staples and the wine shop for that matter.
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