Bottles Special Price
A solution to being ripped off from retailers?
Ever walked into the supermarket a saw a bottle of coke for $3 realising the company gets the bottle for less then 40cents or a brand new lcd 50" costing you the buyer $1200 - $6000 and yet again the retailers get them for as $600 - $2000 and yes i know they get them cheaper because they buy in bulk but think about it if we could buy direct from the suppliers then they'd be selling just as many any how. Obviously that will never happen but what i'm thinking is that retailers should display the price at which they purchased the items for so we can see just howe much of a difference there is in price and to know whether those " discount " " special " items really are on special. What do you guys think?
Are you nuts? There's nothing wrong with making a profit-that is after all the ultimate reason any business goes into business. Without retailers it would be a lot harder for the average consumer to get ahold of whatever they want. I'm not even going to argue how insane you think average markups are or how crazy it would be for a retailer to post their costs. Instead I'll try to educate you a little. A store has expenses above the simple cost of an item-payroll (cashier, stocker, janitor), rent (building and property), store maintenance (stuff breaks down), advertising, fixtures, signing, donations, utilities (lights, heat/a/c, water, etc.)----all of these things get paid from the profit made on a sale so that the retailer can stay in business. Hopefully after all the bills are paid they have a little money left over to pay themselves back for their time/effort and investment into the whole store and that is a very hard thing to do.
You're ideas on cost are way off. Electronics items are very low markup items-typically just a few percentage points on a TV (a $1200 tv may cost the store $1100), computer ($600 may cost $550) while accessories may have a better markup like paper reams ($2 may cost them $1.15) or print cartriges at ($40 may cost them $29). No store really makes much money on electronics. It's a highly competitive area and it's long been established that anyone in the electronics business has to accept this fact.
Pop, such as a 2 liter of Coke that sells for $1.50 is not a great money maker either. 2 liters may give you 20% return if your lucky but generally that's rare. Cost on pop varies a lot and many times of the year you have to keep your retail down despite what happens to your cost. You hopefully can make up some of this by pushing convenience sized things like 20 oz bottles or 12oz cans where you can make 30-40%. 24 packs are generally sold at cost or at a loss. This gets us into "loss-leaders." Did you know a gallon of milk is almost always sold below the store's cost or only a few pennies above? Again this is just the nature of retail and unless you've been in retail you'd probably never know. There are things that have higher markups: clothing, towels, plastic storage, generic items, etc. all commonly are marked up over 50%. In general many things in a store still only have a 20-30% margin.
You are right though... A $1200 TV probably does only have $300-600 worth of components to it but to get it produced (labor) and shipped from China or where ever to you would cost you hundreds of dollars so it's cheaper to let retailers buy / ship in bulk and honestly still save you the money. No factory really wants to get into the retailing business anyway-it's too much for any business to handle the whole production side of things AND the whole retail side of things too. Again, if you're not a retailer, this probably still doesn't make a lot of sense to you. Be assured there's no retailer anywhere doubling their money on any TV or Coke...far from it. Give retailer's a break-it's not as easy as it looks. If you think you can do better, start a store and do it yourself... have at it...and let us all know the name of your profitable store that sells things for 1/2 what everyone else does so that we can all shop you and learn from you!
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