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Quote by: tivodan1116  Your solution is laudable in its goal, but is too limited to actually have the desired effect.
There are far more economies of scale at play in competitive markets between differently sized companies than just the cost of goods sold.
Things like real estate, labor, overhead, advertising, etc, all have economies of scale that allow larger companies to save money and deliver goods at lower prices. While supplier pricing is important, it is only one part of the equation. |
True, this is not a "cure all' bill and likewise not intended as an all out attack to destroy chain stores. Rental space at a supermall would not be affordable for a small upstart store, so they would seek out a rental properties at less "central' locations and would need to depend on locals for their business, mostly via 'word of mouth' and those who see the store when driving by. The more traffic the more the rent is, but later on if they can advance thier business they can try expanding to better locations. A tiny hot dog stand could once more become a MacDog chain. From the bottom up. If they have a chance via a fair playing field. But indeed, finding the right location is a key factor when starting up a indedpendant store form scratch. Likewise getting economic backing form a bank when starting a new business is a factor, to survive the first 6 months to a year while you drum up enough buyers who know you are there. If banks know you can compete due to this 'equality bill' then new comers are more likely to get approved by the banks.