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Additional Details
Not water, but kind of not give you the full amount........ |
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Additional Details
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james_jass | Large companies such as Costco, Wal-Mart and Home Depot are often criticized for driving out Mom & Pop stores. |
do you agree? |
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Moonwake
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Wal-Mart has taken over the world! We should not be worried about a communist take over we have Wal-Mart to worry about! |
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TaxGurl
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The larger stores are able to drive out the smaller stores due to basic economics. Most vendors will give a volume discount so the more you buy, the cheaper it is. Home Depot may buy 1.000,000 widgets from a vendor each month but a mom and pop store will only buy 10. Therefore, Home Depot will get them at a cheaper price and be able to sell them at a cheaper price. The larger stores also have much higher capital balances and will get more favorable interest rates or be able to borrow more money as needed. A larger store can also operate on a smaller margin and make more money due to the volume of sales.
Mom and pop stores will never be able to compete with the big chains on price since they pay a higher wholesale price for the same goods.
I don't think it's the fault of the big stores----just not a level playing field. For the smaller stores to stay in business, they need to find a way to set themselves apart. They can't compete on price and they will never do the volume......so they need to come up with a unique angle to draw the customers in.
For example, I used to run a musical instruments store. A basic saxophone retailed for $1450. Our store needed to sell it at $1450 to make money. A big chain moved in and was selling the same saxophone for $950. My wholesale cost on it was $1200, theirs was $800, I couldn't match their price without selling the instrument for less than I had paid for it. We had a great local reputation based on service but we just couldn't compete with them on price. It wasn't their fault-----they just got better price breaks due to the volume they bought and sold. |
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Jen G
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It sucks, but people aren't willing to pay higher prices just to buy something from the Mom and Pop stores... If they were, you woulnd't see this happening. |
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AnnaSavannah
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I'm sure they do....even I am guilty of shopping at Walmart because it's a one stop for whatever I need. However...I'm trying to not go there as much since I found out that they import 95% of their stock from China. If they bought that much American made merchandise, there would be a lot more small businesses here. |
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Bruce T
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You have correct answers already and I can add to it. I shop all these stores in North Atlanta for value on the dollar and always find what I need. Unfortunately, the smaller stores are effected.
Recent years Walmart and Home Depot have been approved to build beside "high dollar" ($600,000 to over a million) neighborhoods in our area. The effect has been homes within view or within hearing range drop in value and/or have difficulty selling.
Why are these stores approved? Huge Tax Base. Commissioners see the Tax Base generated, people come into the area and spend money at other retailers, restaurants, etc. as well. There are also people that will purchase homes in an area with these stores conveniently located. As a real estate agent showing homes to people moving to Atlanta area I also get the question, "is there a Home Depot or Walmart close by".
It is very sad to see the smaller stores go out of business. Progress is good in some ways and bad in others. |
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Tammy
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Yes--we have a food distribution business for like restaurants, nursing homes etc--and alot of them think they have to buy from the big boys--Sysco, US Foods, Shamrock etc---somethings we are higher on(because they get to buy in such larger quantities) and some things we are lower on--we have better service and alot of people will admit that-but the big boys put a minimum amount there for delivery and so the people have to buy more from them to meet that minimum-which leaves little for us. Fortunetly, we have some faithful customers!!! |
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