03-09-2011, 02:07 PM
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#90
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****CENSORED****
Join Date: Apr 2010
First Name: Larry
Location: Central Florida
Posts: 12,068
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Re: Advice for B&M owners anyone?
Quote:
Originally Posted by awsmith4
The term 'gouger' is what I don't understand. If that person paid retail for there product and needs to sell them to make a profit then they have to sell above MSRP. If that person paid wholesale for the product and needs to sell above MSRP to make a profit then that is there choice and we have the choice not to by. But let's say that person's overhead is such that they have to charge more, even double. That is not gouging, that is running a profitable business.
I understand that you don't want to overpay, but here is another example: I can go to Total Wine, a very large chain, and buy a 6 pack of Dogfish Head 60min IPA for $8. The same beer may be at a smaller store for $10. Total Wine buys, and sells, much more product than the small store. Their profit margins do not need to be as high because they have large sales volume. The small store needs to have a bigger margin because they have to make more per beer because of low sales volume. I know everyone gets that concept so we'll move to restaurants. Now, I can pay $8-10 for a 6 pack but then I go to a bar/restaurant and they want me to pay $4-8 for 1 beer. Is that gouging? No. They are providing a product that is convenient and desirable at a price they can make money on. A small cigar vendor in an event type atmosphere is doing the same, they are providing a desirable product at a price people are willing to pay. Chances are they do not do the volume of sales as a regular cigar store, and as I stated above, they may have had to buy there stock at a higher price. Value is not MSRP, it is not set by the manufacture, value is what someone is willing to pay.
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Vary well put Albert!!!
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