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Old 08-18-2007, 11:49 PM   #10
aygie aygie is offline
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Quote:
Originally Posted by WickyWoo View Post
People need to start understanding the differences in scale between a retail store, even a chain and online

Amazon.com has what, 10 warehouses? From there they service 3-5 states each. Not only that, but they don't have to replicate stock everywhere, so you can centralize lower selling categories. It's very efficient and they operate on volume. They're not paying rent in a high-profile area, just a warehouse in an industrial park somewhere. They don't have to pay floor people and cashiers. They don't need display models, they don't need anything but a bunch of shelves and people to pull things.

So yes, they can afford to only pull a 5% profit on each item.

At a restaurant, that dinner you just paid $16.95 for. You know how much the food on your plate ran? About $4.25. Multiply that by 4, and you have a decent profit, rent, electricity, gas, wages etc.

I really wish people would stop saying retail is "a rip-off", because it's simply not true.
Hey Wicky!

I wasn't moaning about the store being exspensive, it was the fact that it was their website that was selling for £10 cheaper. I just found it completely odd. Like i said i bought the prestige aswel and it was £3 pound cheaper on the website but i kept cause i don't mind paying that much for the convenience of the store.
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