How should NAF resale merchandise pricing be set to ensure it does not compete with BX?

Setting NAF (Non-Appropriated Fund) resale merchandise pricing to be the same or higher than BX (Base Exchange) pricing is a strategic decision aimed at maintaining a healthy relationship between the two entities. The BX usually has a pricing structure that reflects certain standards and regulations, and if NAF pricing were to be set lower, it could encourage competition that undermines the BX’s business model. This practice could lead to potential financial losses for the BX and might affect the range of products and services they can offer.

By aligning NAF prices with the BX or setting them higher, substantiated by factors like unique customer segments or specialized inventories, NAF resale operations can ensure there is no direct competition. This approach preserves the integrity of both services, fostering a cooperative rather than competitive environment and allowing both to fulfill their missions effectively without encroaching on one another's customer bases.