John's Ladders sells ladders to 2 different markets: to home improvement stores such as The Home Depot and directly to painting contractors (painters).

Suppose John's charges painting contractors a lower price for its popular 8 foot ladder than it does to home improvement stores.

(1)Under what circumstances would it make sense for John's Ladders to sell at a lower price to painting contractors than it does to home improvement stores.Explain how this pricing strategy benefits John's Ladders.

(2) Why would John's Ladders put a "not for resale" sign on its ladders sold to painting contractors.Explain how this benefits John's Ladders.