Unless you are fortunate enough to be in a great market, retail can be a brutal business. And if you are in a great market then there's always someone else opening up a competing shop. A retail shop owner is not trying to retire off each sale. In many cases, he's trying to survive & really wishes that he could raise his prices even higher. Good on-line shops can sell cheaper than brick & mortar shops because business costs are no-where close to each other.
The most obvious cost difference between a retail location and a on-line (warehouse) location is rent - I pay about $4,000 less per month than if I were in a low cost strip mall somewhere. The second cost is fixturing, starting with the racks & shelves for the product, all the way out through the checkout stands. Even used fixturing, providing you can find whet you want used, can cost a small fortune. Warehouses use low cost shelving & there are no product displays to set up and maintain. And these are just two examples - there are many more. All of these cost savings can translate into savings for on-line customers, often so much savings that they more than cover freight. My on-line business is open for limited local hours, but it's very obvious that it is a warehouse operation. I'd have to mark up my goods another 20% - 30% just to stay where I'm at profit wise if I were shipping out of a traditional store front. Thanks, Tom Hargrave www.kegkits.com 256-656-1924 -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Robert & Tara Ludwick Sent: Sunday, September 09, 2007 10:59 PM To: Mercedes Discussion List Subject: Re: [MBZ] i really don't get how brick and mortar shops can survive today We buy just about everything but fuel and groceries online, It saves a minor fortune. Building material have remained the last bastion of protected territorial marketing , but it looks like that's finally cutting loose as well. It's about time. I have no sympathy for the local business owners crying about how they're loosing business to the internet. If ( at least around here ) they weren't trying to retire off of each sale, and being jerks about it to boot, they wouldn't be loosing business. I can't wait until some enterprising lumber wholesaler goes internet and starts offering direct ship lumber without the extra 2-3 middle men. ----------Robert Peter T. Arnold wrote: > On Fri, 7 Sep 2007 22:07:19 -0400, you wrote: > > >> i've been stopping at every hardware/home/discounter store i pass for the >> last week looking for burgundy rustoleum. my leg kills me every time i get >> back in the car. it's 90 degrees outside. no one seems to have it. >> >> i look online . my order is placed in 5 minutes. they are paying the >> freight. i'll have it within a week. >> >> how can your local hardware store compete with this? >> _______________________________________ >> > Last year we remolded the Home interior. Took the kitchen out to the > studs! Spent the value of a Buick. > New high end cabinets from Home Depot, best to pay them to worry about > layout > > $5,000 of appliances and stuff bought online, savings after shipping > was about 25% > "Pergo" style flooring for living room bought online, savings was > about 50% > > My wife is a shopaholic, she like to get the last dime off the table. > > Buying on line has been very good for us! > > -- > > Regards, > > Peter T. Arnold > > 2007 HHR, 2.4L/Auto, LT2, 12Kmi, No problems! > 1987 300SDL 280KMI Inherited by Grandson > 1995 F-250 PowerChoke 199Kmi > 1954 Metropolitan Convertible, Hanger Queen > Wife has a Cruizer, 80 Kmi, as reliable as an Ice Box, the car that is! > > _______________________________________ > http://www.okiebenz.com > For new parts see official list sponsor: http://www.buymbparts.com/ > For used parts email [EMAIL PROTECTED] > > To Unsubscribe or change delivery options go to: > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
