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Let's talk about supply, demand, and billionaires.

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posted on Feb, 7 2016 @ 01:12 AM
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originally posted by: BatheInTheFountain

The mistake is that too many try to mimic their model.



Ding ding. Important lesson here. More Wallmarts does no one good and competition between multiple identical general goods stores is pointless. There are already plenty of alternatives that provide differing levels of quality, etc. Blockbuster was once a behemoth. People who innovate and come up with new ideas are the future. Same could be said about brick and mortar bookstores.




posted on Feb, 7 2016 @ 01:12 AM
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a reply to: BatheInTheFountain

I thought volume was a major facilitator of business?

If you can do more, you can offer it for less..

I've heard three percent profit margins for Walmart.

If they made ten times as much, couldn't they half that?



posted on Feb, 7 2016 @ 01:13 AM
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originally posted by: Semicollegiate

originally posted by: deadlyhope
a reply to: BatheInTheFountain

How can this happen?

Even if the government taxed far less, imposed less restrictions..

How do you compete with large businesses?

Especially if they are enjoying the same tax breaks and loose restrictions.


Don't compete with the best. Compete in something new, like solar panels or electric cars or robots or B2B stuff.

There is a lowest possible price and corporations are good at getting closer to that than anybody else.


Correct.



posted on Feb, 7 2016 @ 01:18 AM
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originally posted by: deadlyhope
a reply to: BatheInTheFountain

I thought volume was a major facilitator of business?

If you can do more, you can offer it for less..

I've heard three percent profit margins for Walmart.

If they made ten times as much, couldn't they half that?


LOL do you know Walmart's margins?

Average maybe 10%-20%. Groceries, Health and Beauty, Cleaning supplies, soaps, stock items....FAR LESS

A lot of their stuff is "Loss Leader" stock. Meaning most times a LOSS.

That's there business model. And it sucks. Hahahaha

But they SPAM the world with that model. So they make BILLIONS.

They're the brick and mortar SPAM trolls of the world.
edit on 7-2-2016 by BatheInTheFountain because: (no reason given)



posted on Feb, 7 2016 @ 01:20 AM
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originally posted by: BatheInTheFountain

originally posted by: deadlyhope
a reply to: BatheInTheFountain

I thought volume was a major facilitator of business?

If you can do more, you can offer it for less..

I've heard three percent profit margins for Walmart.

If they made ten times as much, couldn't they half that?


LOL do you know Walmart's margins?

Average maybe 10%-20%. Groceries, Health and Beauty, Cleaning supplies, soaps, stock items....FAR LESS

A lot of their stuff is "Loss Leader" stock. Meaning most times a LOSS.

That's there business model. And it sucks. Hahahaha

But they SPAM the world with that model. So they make BILLIONS.

They're the brick and mortar SPAM trolls of the world.



But ... But ... That smiley face tells me they have the lowest prices...



posted on Feb, 7 2016 @ 01:22 AM
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a reply to: BatheInTheFountain

So people are saying.. Don't go into retail.

Is that it? Regardless of whether or not a person could be good at retail, the market has gotten to the point where you nearly cannot compete?



posted on Feb, 7 2016 @ 01:23 AM
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But here's another secret of business.

The opposite of NICHE....Walmarts of the world are DIVERSIFIED...

What's that you ask????

Hmmmmm...more theory of business longevity.



posted on Feb, 7 2016 @ 01:23 AM
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originally posted by: deadlyhope
a reply to: BatheInTheFountain

So people are saying.. Don't go into retail.

Is that it? Regardless of whether or not a person could be good at retail, the market has gotten to the point where you nearly cannot compete?


Retail is too broad a term. General goods, yes.



posted on Feb, 7 2016 @ 01:24 AM
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originally posted by: deadlyhope
a reply to: BatheInTheFountain

So people are saying.. Don't go into retail.

Is that it? Regardless of whether or not a person could be good at retail, the market has gotten to the point where you nearly cannot compete?


General Goods....yep.

Remember Amazon? (Who I'm partnered with)

There's those guys and the nefarious evil overlord named Jeff Bezos...(my Employer)

Walmart? Who's that now? LOL



posted on Feb, 7 2016 @ 01:25 AM
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originally posted by: BatheInTheFountain
But here's another secret of business.

The opposite of NICHE....Walmarts of the world are DIVERSIFIED...

What's that you ask????

Hmmmmm...more theory of business longevity.


You can diversify within your own business sector, though. See Banana Republic, Gap, Old Navy (spoiler alert, owned by the same company).

edit on 7-2-2016 by ExNihiloRed because: (no reason given)



posted on Feb, 7 2016 @ 01:27 AM
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originally posted by: deadlyhope
a reply to: BatheInTheFountain

So people are saying.. Don't go into retail.

Is that it? Regardless of whether or not a person could be good at retail, the market has gotten to the point where you nearly cannot compete?


I would suggest a SERVICE before retail.

Retail is too hard. Trust me. Many sleepless nights and market fluctuations.

Don't do it if you aren't ready to grind and battle with alcohol at some point


edit on 7-2-2016 by BatheInTheFountain because: (no reason given)



posted on Feb, 7 2016 @ 01:28 AM
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a reply to: BatheInTheFountain

Prime pantry could honestly compete directly with Walmart in my opinion. Consumers are knowledgeable enough about goods that in store selection is becoming less valuable, and convenience more valuable.

Streamline shipping and I'd shop there instead of Walmart.



posted on Feb, 7 2016 @ 01:29 AM
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originally posted by: BatheInTheFountain

originally posted by: deadlyhope
a reply to: BatheInTheFountain

So people are saying.. Don't go into retail.

Is that it? Regardless of whether or not a person could be good at retail, the market has gotten to the point where you nearly cannot compete?


I would suggest a SERVICE before retail.

Retail is too hard. Trust me. Many sleepless nights and market fluctuations.

Don't do it if you aren't ready to grind and battle with alcohol at some point



That makes sense.

Service until you need a building then

Sell this and that out of the building then

Add more inventory then

Be a retail outlet.



posted on Feb, 7 2016 @ 01:33 AM
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Gotta go to bed. I have to ream Jeff Bezos and his crew via email tomorrow over a line of code they can't fix for me..

We're all slaves. Gnite



posted on Feb, 7 2016 @ 03:47 AM
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a reply to: BatheInTheFountain

Where does the coin come from that pays the employee to keep the business productive and open.
edit on 7-2-2016 by MOMof3 because: sp



posted on Feb, 7 2016 @ 07:23 AM
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a reply to: deadlyhope

Great post. You did a really good job of expressing all this!

I agree. The consumer is the most important part of the free market. The resources of the world belong to everyone. The free market allows for the consumer to determine how those resources are developed and distributed by their purchases. The market is supposed to be geared to the best interests of the consumer.

The problem starts with government intervention. For example, when a city/state decides to give big companies like Walmart extra perks -- at the taxpayer's expense -- to open their new store in their city:


The report from Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations, identifies 16 states that let companies divert some or all of the state income taxes deducted from workers' paychecks. None of the states requires notifying the workers, whose withholdings are treated as taxes they paid.

General Electric, Goldman Sachs, Procter & Gamble, Chrysler, Ford, General Motors and AMC Theatres enjoy deals to keep state taxes deducted from their workers' paychecks, the report shows. Foreign companies also enjoy such arrangements, including Electrolux, Nissan, Toyota and a host of Canadian, Japanese and European banks, Good Jobs First says.


Big Companies Collecting State Taxes From Workers And Keeping The Money

That's not a free market. How can a small mom and pop store compete? They don't get to keep those taxes in their coffers. Then add the corporate welfare tax credits and deductions that so many huge corporations get, but not their small business counterparts.

It all adds up. And hurts the worker and the consumer most.



posted on Feb, 7 2016 @ 07:37 AM
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Consumers create demand, but without something exchange, they have no means to finalize that demand.

To illustrate your point:

The Waltons grow corn, so they supply it. Everyone else wants corn. Without something to exchange for that corn, it doesn't matter how much the consumers of corn want it, they aren't going to get it. After all, because the Waltons spent all their time and energy being corn suppliers, they have needs of their own they were unable to fulfill along with needs related to being corn suppliers that must be fulfilled in order for them to keep producing corn.

They cannot simply give the corn to people who want it. They must receive enough in exchange to cover both their needs and the needs related to further corn production.

Basically, the aggregate demand must pay enough for their supply to cover their cost of labor and their costs of living and their costs of production. If it does not, then they cannot produce corn and expect to survive. The Waltons will need to turn their energies elsewhere or go where their demand can meet their needs as suppliers.

So back to the consumers and their demands ... What are they paying for the corn with? It isn't enough for them simply have demand to make supply a worthwhile endeavor as I just got done explaining.

Every 6-year-old boy wants a Lamborghini, funny how that hasn't inspired Lamborghini to sell in every 6-year-old market.
edit on 7-2-2016 by ketsuko because: (no reason given)



posted on Feb, 7 2016 @ 07:44 AM
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a reply to: deadlyhope

Try offering a niche service that a place like Walmart won't bother with. I know of two butchers in this area. They both do quite well as far as I can tell. One specializes in huge cuts of meat and selling everything nose to tail. One an average Saturday, you can find a real cross section of the city in there - everything from local 'hood types to yuppie grilling aficionados. The other is a small artisan charcuterie and cured meat place that regularly has lamb and rabbit along with the more traditional stuff.

You don't find what they offer in the Walmart or box grocery meat case.

Look for those kinds of angles on your retail and build a clientele. You can make it in retail.



posted on Feb, 7 2016 @ 08:05 AM
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a reply to: deadlyhope

Good thread; this is one more way to point out the total and complete failure of the "supply side" (more accurately VooDoo) economic model.

It helps the already wealthy, by bleeding everybody else near-dry.



posted on Feb, 7 2016 @ 09:30 AM
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a reply to: ketsuko

I'd argue your illustration is bad and it seems you do not know who the Walton family is..

They own Walmart.

They do not grow corn.

They have very little to do with supplying corn, other than being a meeting place for corn to be sold.



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