Jeff Keller wrote:
>----- Original Message -----
>From: "Moose" <olymoose@xxxxxxxxxxxxxxx>
>
>
>>Right, that's why they are still in business. Individuals tend to
>>misunderstand the cost structure of warehousing, handling and shipping.
>>
>>
>Sarcasm???
>
Moi? Well, maybe a little bit. :-P
Back when I worked for a huge retail business, I was often amazed at
assumptions people without business knowledge made about business costs
and profits. One of the biggest assumptions is that labor, or at least
the marginal labor time to do what they want done, is free of cost to
the employer. Warehousing, handling, shipping, etc. cost serious money,
a great deal of it in labor.
Simple example from back when I knew the cost structure of chain
supermarkets. If an item comes into the store and goes directly to the
correct aisle and onto the shelf, you make money on it. If it doesn't
fit on the shelf, goes into the back room, then comes out onto the shelf
later, you are lucky to break even and will likely lose money on the
sale. I can't imagine it isn't still true today.
> or acknowledging that small sales are a money looser???
>
I neither know nor assert that. I expect it varies widely by industry,
sub-market/business model within the industry and quality of business
management.
>I doubt I would buy another T cord from B&H; yaBe has been more accurate.
>However I wouldn't hesitate to buy a lens from B&H. A higher than necessary
>shipping charge just means I phone occaisional small orders in rather than
>internet them in.
>
I didn't read your original post clearly enough. My comments have been
based on new products. Almost all my used gear has come from the list of
*Bay.
> My decision isn't based on whether they make money
>
But my point above and before is that it is indeed based on whether they
make money, because if they don't they go out of business and you can't
buy from them. My original, slightly scarcastic (so I slip once in a
while, so...), comment was pointing out that businesses like B&H,
Adorama, etc. have been around for decades, so any assumption that they
don't know their market and their costs is likely false. The folks who
didn't know aren't in business anymore.
>just whether the cost is competitive, the vendor is trustworthy, and whether
>the
>product is worth the cost to me.
>
Of course.
Moose
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