tie-in sale

tie-in sale

a business practice whereby a supplier encourages a dealer/purchaser not only to buy the GOOD or SERVICE of primary interest to him but to buy also, as part of the same transaction, some other related good or service. For example, a supplier of colour film might attempt to tie the processing of that film to himself by including an inclusive processing charge in the price paid for the colour film. The practice of tie-in sales may help the supplier to increase his total sales and also to protect BRAND LOYALTY (for example, in the case of colour film, inefficient processing by an independent processor might lead the purchaser to believe, erroneously, that poor picture reproduction is due to the poor quality of the film itself). However, if undertaken by a DOMINANT FIRM, the practice may serve to limit competition in a market by discouraging purchasers from placing their custom with rival businesses. See OFFICE OF FAIR TRADING, COMPETITION POLICY (UK).
References in periodicals archive ?
NORDIC BUSINESS REPORT-20 September 2004-Sony Ericsson wants Finland to end ban on tie-in sale of mobile phones and subscriptions - report(C)1994-2004 M2 COMMUNICATIONS LTD http://www.
Swedish-Japanese telecomms solutions provider Sony Ericsson Mobile Communications AB (Sony Ericsson) has reportedly urged Finland to scrap its ban on the so-called tie-in sale of mobile phones and the subscriptions to use them.
TELECOMWORLDWIRE-20 September 2004-Sony Ericsson wants Finland to end ban on tie-in sale of mobile phones and subscriptions - report(C)1994-2004 M2 COMMUNICATIONS LTD http://www.