If you have the option, do you use the cashier or the self checkout line at the grocery store? What about other types if store like hardware stores?
If you have the option, do you use the cashier or the self checkout line at the grocery store? What about other types if store like hardware stores?
How does it work? Why don’t supermarkets just ask a million for a loaf of bread? More money and profits, right?
Now, I am aware there are cartels and other anticompetitive practices, but no single supermarket chain has a monopoly. There is competition, the margins in the business really are not that high, and supermarkets can and do lower prices to attempt to increase their market share. In fact, for products like bread supermarkets often deliberately sell them at a loss.
Would supermarkets like to put the savings of self-checkout in their own pocket? Absolutely. Can and will they, on the long term? No. If businesses would always pocket such savings, then margins in the entire economy should tend upward over time, and they simply don’t.
Head in the sand my dude. Canadian groceries were caught red handed colluding on bread price fixing. There was a massive class action lawsuit. Companies charge as much as they can get away with and will always push the numbers higher. They’re not eating costs out of the goodness of their heart, loss-leaders lead to more spending.
Yes, I am aware there are cartels and other anticompetitive practices. I said as much in a comment on Lemmy not long ago - with some detective work you may be able to find it.
Obviously. And what they can get away with is profit margins up to a certain limit (assuming no monopolies, and at least moderately effective anti-cartel measures), that limit being the point where it becomes easy to enter the market or undercut a competitor, gain massive market share, and still make a lot of money.
They cannot get away with just endlessly taking all profits from productivity gains. These gains have been enormous since the start of the Industrial Revolution, and in most markets profits are on the order of a few percent of turnover, if that.
You reference it, you cite it.
Oh ho ho, they can and will.
It’s right here in the comment chain.
Okay, but they don’t, profit margins are typically a few percent.
Riddle me this: why did Kmart (for example) declare bankruptcy? They just wanted to throw away free money?
Conaway and Schwartz were accused of misleading shareholders and other company officials about the company’s financial crisis while making millions and allegedly spending the company’s money on airplanes, houses, boats and other luxuries. At a conference for Kmart employees on January 22, Conaway accepted “full blame” for the financial disaster. As Kmart emerged from bankruptcy, Conaway was forced to step down, and was asked to pay back all the loans he had taken.
https://en.wikipedia.org/wiki/Kmart
Then they bought Sears, though that brand was already a sinking ship.
See; this is how providing proof works. Not just spouting something and saying “go look it up”
Every large company wastes millions on overpaid executives.
If companies pocketed all gains from productivity boosts, a T-shirt would cost a thousand dollars or so. Not only that, but no one would think to start selling T-shirts for hundreds of dollars or less, despite them costing 10 cents a piece to make in a sweatshop.
Is that what happens?