Black Friday Illegal in Oklahoma?

Not quite, but one pundit suggests a bad law is to blame for such suspicions

It's unimaginable. It's possibly even un-American. It's...a ban on Black Friday in the heartland state of Oklahoma.

This according to Slate's Matt Yglesias. The progressive pundit calls out Oklahoma's "banning" of Black Friday (despite proof to the contrary) based on a law there stating that retailers must price their merchandise at least 6% above cost. Dubbed the "Unfair Sales Act," the legislation's apparent purpose is to protect smaller businesses from larger ones that, in theory, will price their products below cost until all rival outlets are driven out of the market - and consumers are faced with a monopoly.

But there's a flaw in that thinking, notes Yglesias, namely one of limited imagination. "Real world discounting can serve many other purposes," he writes. "A typical retail discounting strategy involves amazing bargains on a relatively small number of items, with the purpose of the bargain being to get shoppers in the door in the first place."

If indeed typical, it would render Oklahoma's effort to prevent monopolies as ill-considered as the behavior of certain Black Friday shoppers...

Via Slate.

Do you agree with Oklahoma's law regulating retail pricing?

[MRMacrum]

As a very very small retailer, I do not in any way support the government, any government dictating prices. If I own the product, I should be able to sell it at any price I want. As much as I hate the box stores, I support their right to do so also.

What I would like to see is a more even playing table created when competing against the Internet. I have to charge sales tax, so should they. Tax one, tax all.

[LetsAllBeHappy]

but I don't wanna pay taxes, I do not know about your business, but can you sell stuff on the internet? Cool news about your daughter.

[LetsAllBeHappy]

I am going to move to one of those states that legalized pot, and start me a business

[FFX_VA]

@MRMacrum If I may ask, which PhD degree is your daughter pursuing? It's a lot of hard work and takes dedication. Good for her!!

[WMCOL]

Retailers should be able to price their products at any price they choose, otherwise it is a conspiracy to fix prices, and in this case a state fix.

What about a large company that can buy for less, and can dictate to manufacturers and suppliers the cost of goods, and therefore offer products for less than the smaller retailers who don't have the influence of say a Walmart? Walmart drives small businesses out of business with lower prices and when competition is destroyed they raise prices. It happens in small towns all across Oklahoma.

The state should not be allowed to set prices for retailers. A law that dictates 6% above cost is price setting.

[jessejaymes]

Is anyone really surprised? I mean we have Mississippi and the Appalachians and the Idaho/Montana Militia idiots and then at the bottom of the barrel, the laughingstock of America, Oklahoma.

[Fishbone345]

Like I said before, we should allow Texas to secede on the condition they take Oklahoma with them.

[jessejaymes]

@Fishbone345 LOLOLOL

[martydotcom]

Guess the Internet doesn't exist or is Oklahoma monitoring all transactions.
Parents had a small drug store over 3 yrs Rite Aid, CVS and Costco moved nearby. He adaped, none would deliver or fill an Rx in ten min. while you waited, personal service! Focued 100% on Rx biz. When father was ready to retire @67 he sold to Rite Aid

[Dan_Tien]

I may be wrong, but it seems to me that pricing products below cost in order to eliminate competition would fall under the category of antitrust violation which is already covered by existing laws.

[PoliticalSpice]

Most retailers take a few popular products and sell close to cost. A "sale" they hope to draw you in and that you buy other things they make a profit on...

[mudzangandoro]

Bad for Walmart good for mom-and-pop shops.

[LetsAllBeHappy]

i am ignorant with this subject, whoo hooo over my head, but the comment about it being good for the mom and pop stores-if that is true, then I am for it

[scotta]

You have to sell gas, tobacco, and booze that way why not everything else.

[Kellso]

I agree that Everything but emergency and police situations should be CLOSED for weekends. If people would realize that if you cant get it sunday you will get it monday and so on. Give families some time to live alittle again..

[Fitz]

I think it funny that people believe government, which very closely resembles organized crime, uses most of the same tactics as organized crime is trying to make things fair. Free market can and will work.

[1adam2]

well first of all, they only try to make it look fair. they do not actually, make anything fair.

but you are right about, it being an organized crime syndicate since about the 1950'S. so i say it more than, closely resembles organized crime. they just call, their protection money: taxes. which is also more like lonesharking now, that we have to pay for an unbearable intrest rate.

and many states, are even running a numbers racket. now that they have eliminated most other organized crime. as they more and more, became organized crime.

[dances-weebles]

i think that 'black friday' should be illegal everywhere. what i'd rather see is a federal law stating that christmas shopping is illegal until around 8 p.m. on christmas eve and only go until midnight. stores would have to install web cams and stream the shopping period live online in real time. now that would be fun to watch over the internet.

[Keyjo]

It could be the holiday special programming, replacing WWF and cage matches.
"Holiday Catfights on Thin Ice!"

[steveandesinTN]

If they make them sell it for a minimum markup 6% they should also make a maximum markup of 12% that would be fair to both, and good for the consumer

mom and pop stores have been marking stuff up 300% or more for even. now they can not do it and are mad. they would rather make $25 on one sell than $50 by selling at a lower profit and selling more of the same item because of the lower price.
It is time for small mom and pop rip off joints to be shut down.

[MRMacrum]

The discount pricing technique to drive traffic in a store is called a "Lost Leader". However, many retail operations operate on low price/high volume strategy. Walmart and the big box stores operate this way. Many of the Internet sites are able to keep the prices down because their overhead costs are so low. But once you get to the Amazon level, it becomes both high volume and lower overhead than running a brick and mortar main street outfit. There is no question, operating a storefront is as tough as it gets in today's retail world.

As a Main street retail business I spent some time whining about the "unfairness of it all". But it is the new reality. A small business like mine has to find other ways to compete. I have learned to make do with less profit by cutting my overhead costs to a minimum and not hiring as much help. I do not keep high end bling on the shelves. I order it as necessary when a customer wants it. There are numerous things I have tried. Some are working, some are not. And yes, it can be a very frustrating life. I understand completely when another store on Main Street closes.

[1adam2]

well i seriously doubt, any company selling below 10% above cost. larger companies, get their reduced pricing by ordering bulk. so they can outsell smaller stores any time, that cannot order in large quantities.

even in colorado, where you cannot have a sale below cost. the larger companies, can still offer lower prices, than smaller stores. and i am very familiar, with price breakes for certain quantities. where if the quantity is sufficient, you can get it for less than half price.

[HankHemp]

Yes