- Joined
- Jun 16, 2007
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Having high margins in business is not a bad thing.
Don't get me wrong I totally agree with that, but most people buy items like the one I posted based on a price as they are an equal product which does the exact same job.
It is the exact reason why Jessops failed, as people found the exact same item cheaper online. When Maplin are selling the same item for 10x the price as another online retailer, it won't be long before more and more people realise this and go elsewhere (especially as they are a like for like product purchased via the same outlet - online)
My thoughts exactly, Stores like Maplin and Staples rely quite heavily on small-to-medium sized business customers who don't really need (or are prepared) to go through the price-comparisons that retail customers feel the need to. The purchase costs after-all went to the business not from a personal pocket.
Which must be a huge contributing factor to why small companies either go out of business, or have such low profits.
As my father would say when he was alive "Look after pennies and the pounds look after themselves"