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The entire big box economy is a big honking subsidy to people with cars living in the suburbs by the poor, the singles, the seniors, the urban, the cyclists.
It only works because of the highways and the parking lots and the infrastructure paid for by everyone (road taxes do not cover the cost of the roads) and enjoyed by the drivers. The companies charge twice as much for small packages as big ones because they can; the purchasers without cars and access to the big boxes, the ability to drive between the Walmart and the Costco and the Price Club, don't have a choice.
Read on for Treehugger's reasons. Is bulk buying bad after all?
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Does Buying in Bulk Save Money, or is it a False Economy?
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You humans are all alike.
(Score: 4, Insightful) by Anonymous Coward on Monday September 25 2017, @11:13PM (1 child)
This article author completely fails economics 101. Things in bulk are cheaper for two reasons:
1) People who can buy large amounts of stuff are very desire-able as a customer (due to #2 below), so have relatively stronger purchasing power as compared to people who buy small amounts of stuff.
2) It's less work for to sell large amounts of things a couple of times, than small amounts of stuff lots of times. As an extreme example, most people would prefer to earn 80% of a $1000 sale, than 100% of a $100 sale.
By the author's same arguments, I should be able to call Kraft Foods, Samsung Electronics, and REI and buy everything at wholesale prices. I have just as might right to a bulk discount as Walmart does. Never mind I just want one TV.
I'll also note that if he thinks that there really is a lot of price gouging going on, he is more than able to create a competing business which caters to cities and pull a Walmart. It's been done before. If he's willing to put his money where his mouth is, then he could be the next billionaire... That's assuming he's not just an ignorant ideologue running his mouth off about stuff he doesn't understand.
(Score: 2) by Osamabobama on Monday September 25 2017, @11:27PM
Of course, his investors would want to incorporate this into their risk model.
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