A prestigious kitchen appliance company specializes in European-style custom ovens. Its product line started with smaller high-end ovens with their signature styling and now includes large ovens that can price over $150,000 and are available in a wide variety of colors and finishing features. How might the decision to carry large, highly customizable and expensive ovens impact the company?


Companies that rely on retailers to sell their products may have to pay a subsidy for retailers to carry a product that is unlikely to sell well due to its high price.

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