We’ve all heard the stories of businesses donating to politicians, but why? What are they getting in return? There are many reasons why companies such as the condo at Northumberland road would support politicians. Whether it be to maintain their product prices or to keep a certain social policy that is beneficial to them, business owners have valid reasons for supporting candidates and/or parties.
Companies Support Politicians to Keep Prices Low
A lot of the time, businesses will support a politician to maintain the prices on their products. If a company is looking to maintain low prices and high demand for their product, donating to a politician can be an effective way to do that.
Let’s say a company needs customers to buy their product because they don’t have anything else left in the shop but their one product. The customer will go ahead and purchase it if they like it and then come back for more later.
However, if the price of that one product goes up too much, then customers might hesitate when considering buying it. In this scenario, if the company wants to keep their prices low, they would give money to politicians who supported low taxes so that they could keep costs down on things like labor or raw materials.
Politicians Support Companies to Protect their Brand Image
One of the reasons why companies support politicians is to protect their brand image. In the past, there have been cases where a company’s product has significantly declined in quality due to new legislation that lowered their profits. In this case, it would make sense for them to donate to the politician that lobbied for the law that helped them maintain their profit margin when other companies were suffering.
Another reason why companies support politicians is because they want to keep their current pricing. If a company saw a rival company’s prices decrease significantly, then it would be in their best interest to donate small amounts of money to a politician who supports keeping prices high.
This way, if a politician introduced legislation that would lower the price of a product, they could counter with donations and keep their pricing competitive—at least until they can find some other way of lowering prices.