we sell it at a loss
It has always been very puzzling to me when you ask for a bargain price in a store and get a reply "can't do, we are selling it at a loss already..." I'm neither mathematician or economist, but I just can't figure out how those stores make their business. The only option beside me being cheated, is that there are other ways of making money in selling stuff - besides making it in selling them - that I don't know about.
however, this time I nearly feel like cheater myself.
I ordered a UV protection filter to my camera from where I found it cheapest, this time amazon.com US. The first glance on the prices in Finland shows that they seem to ask from 30 to 70 euros, but amazon sold it for about 9EUROS AND FREE SHIPPING!
It took two weeks to come me, and I kept my eye on it's voyage at amazon site. This little piece of class got itself picked from the shelf at a photo store in brooklyn NY, popped shortly in Newark NJ on it's way to Memphis TN where it hopped into plane to fly via Paris to Vantaa Finland. From there it went through the customs in two different cities in Finland, and yesterday, a guy from Fedex delivered directly to my door.
Besides the fedex guy who got paid for ringing my bell, there have been real human being working at every stop the thing popped at. The store itself had to work to handle the order, pack it at set it on the flight, and they have paid for someone to have the item on the shelf to start with.
I'm so puzzled that I feel that I got the thing itself for free, and paid a ridiculous 9euros to have my stuff on an around-the-world-tour.
I just wish all the stores would know the secret business' of the Ace Photo and Digital and we'd all end up paying nothing for everything.
2 Comments:
moi. löysin tänne.en ymmärtänyt yhtään sun sepustuksesta, joitain sanoja vain, mut olet varmaan oikeessa. vaimos soitti mulle tänään, oli tosi mukavaa.terkut kotiin.elli.S.
Actually, the idea behind "selling at a loss" is surprisingly simple:
1. Because big chains acquire goods in huge quantities, they have an enormous bargaining power. That not only allows them to get very cheap prices, but also very long delays for paying their suppliers. So they might get your 9 euros today, but they won't have to pay their own supplier until 6 months from today. In the meantime, they'll invest the money, get good interest (or at least avoid to take loans and pay interest). What they're gaining from this is more than enough to make up for the loss from the selling price and they still get a good deal of money out of it.
2. The same bargaining power is often used to acquire the raw materials or components for the manufacturer. So, while the manufacturing company might produce your particular article for, say, 15 €, they might be able to do it for 5 € for Amazon, since Amazon is buying the components for them at a much cheaper rate.
Unfortunately, of course, this kind of system only works for the biggest purchasers -- not for everyone.
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