> If you earn 0.01% that isn't a lot, if you earn 100 000x per day then that is very profitable.
My point about profit margins is that they are low profit margins per employee (which I should have made explicit). Retail companies do not have room to hire better managers and workers.
The low margins show that customers are only willing pay so much and that it is a basically all optimizations have been wrung out. At least until a game changer comes along like the internet, which provides even further optimizations, but those are about lowering costs, generally including payroll.
> And I explained why retail does. If retailers aren't necessary, why is Amazon so large? Are Chinese factories just choosing to set fire to money? You explaining it does not make it true.
I never wrote retailers are not necessary. I explained why most retailers cannot be differentiated from one another. And the answer is because for most things, the customer does not care for much other than low prices.
Trader Joe’s is a good example of there being a little bit of opportunity serving the richer households. Trader Joe’s are always only in the richer parts of town, like Costco. But Trader Joe’s is certainly not cheaper than a mainstream grocery store like Kroger or Winco or Aldi, and won’t be able to compete with them in neighborhoods with poorer demographics.
My point about profit margins is that they are low profit margins per employee (which I should have made explicit). Retail companies do not have room to hire better managers and workers.
The low margins show that customers are only willing pay so much and that it is a basically all optimizations have been wrung out. At least until a game changer comes along like the internet, which provides even further optimizations, but those are about lowering costs, generally including payroll.
> And I explained why retail does. If retailers aren't necessary, why is Amazon so large? Are Chinese factories just choosing to set fire to money? You explaining it does not make it true.
I never wrote retailers are not necessary. I explained why most retailers cannot be differentiated from one another. And the answer is because for most things, the customer does not care for much other than low prices.
Trader Joe’s is a good example of there being a little bit of opportunity serving the richer households. Trader Joe’s are always only in the richer parts of town, like Costco. But Trader Joe’s is certainly not cheaper than a mainstream grocery store like Kroger or Winco or Aldi, and won’t be able to compete with them in neighborhoods with poorer demographics.