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Old Jul 28, 2007, 02:16 pm   #8 (permalink) (top)
Technosoul
Volcanic Erupter
 
Posts: 8,663
Quote:
Quote by: Alive View Post
Both the idea and the responses to it are silly. This is a horrible idea because volume selling is good for the consumer! Producers offer discounts for volume buys not because they want to be nice to big stores but because it is cheaper and more efficient to sell in volume (for a number of reasons). The consumer benefits because cheaper prices for retailers translate into cheaper prices at the store.

Mom and pop stores are not necessarily a good thing; if they die in the marketplace, they deserve to die. If people truly want their services they will survive.
We have a small food store near us and I would love to shop there because I like the people running the store, but they must sell (for example) their canned goods for about 50 cents more then the larger stores that are about a 4 miles away. So if I need a lot of items I go to the larger store to save money, due to my limted household budget.

The store stays in business because they sell a lot of beer and booze products. (beer prices are not discounted much in the larger stores compared to his price). He also sells a lot of cigarettes because he stocks promotional brands and not just the name brands, which cost $3.00 a pack less. The big stores cannot stock the cheap cigarettes because they made a deal with the name brand people only to stock name brand cigarettes. This is because a company must pay the big stores a fee for getting 'shelf space' in their high volume store. So only cigarette companies that can afford shelf space due to a larger profit margin can reach the public. With exception of small stores that cator to the wishes of their local shoppers.
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