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The Round Table
Dilemma: B&M or Online Retailer?
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<blockquote data-quote="Anonymous" data-source="post: 317754"><p>Lets not blame the big box operations here. They follow a different business model. They don't really compete in the same arena as a pipe shop. It is more like other specialty stores in the mall. Those business often have an extra distributor in the mix and start with some added cost that requires a better markup.</p><p></p><p>Other than some possible volume discounts, I imagine that the local store has the sames suppliers and pricing. Small shops without the volume then either need higher margins or they fold.</p><p></p><p>Many local shops don't want high volume. There's is a comfortable business as long as it stays profitable. With the Internet, there is the rub. There business will shrink and you can't blame a company that did develop an Internet presence.</p></blockquote><p></p>
[QUOTE="Anonymous, post: 317754"] Lets not blame the big box operations here. They follow a different business model. They don't really compete in the same arena as a pipe shop. It is more like other specialty stores in the mall. Those business often have an extra distributor in the mix and start with some added cost that requires a better markup. Other than some possible volume discounts, I imagine that the local store has the sames suppliers and pricing. Small shops without the volume then either need higher margins or they fold. Many local shops don't want high volume. There's is a comfortable business as long as it stays profitable. With the Internet, there is the rub. There business will shrink and you can't blame a company that did develop an Internet presence. [/QUOTE]
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Dilemma: B&M or Online Retailer?
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