Meet the Cartel
car·tel
/kärˈtel/ : noun
- an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.
Suppose I am a grocer trying to sell potatoes. A potential customer would call only to reveal that instead they are a grocery agent specializing in potatoes, representing a buyer interested in buying some. They will assist the buyer in selecting and appraising potatoes. Instead of “potato grocery agent” they have a catchy name: they are Potaters®. I have no objection to this, until they bring up one important detail: they believe I should pay them a commission to represent not my interests, but the buyer’s. As perplexed as I am by their demands, I am informed they already signed a contract with the buyer to be their exclusive potato agent. As part of this agreement the buyer agreed to pay them a set commission, but only has to pay out of pocket if I do not agree to pay it by reducing my prices to account for it. This makes it prohibitively expensive for them to buy potatoes from me if I do not agree to the scheme. To me, it seems like the buyer made a terrible and expensive life choice expecting a seller to pay.
I then tell the agent this proposal is absurd, only for them to reply that “this is how it is done” and that only their cartel has obtained the right from the government to…
