The concept of the mega store has become increasingly popular these days. These types of retailers use volume rather than price, to make their profit. They also offer a much larger variety of things to the public. This affords a great deal of advantages to the consumer. Here are some of the reasons to consider shopping at these stores.
Imagine that you run a retail shoe business. Every month you sell one thousand pairs of shoes. Those shoes sell for forty dollars. You pay thirty two dollars per pair. That is eight dollars profit for each pair sold. In a month’s time, you will make eight thousand dollars.
Mega type stores operate on a much smaller profit margin. This is possible with many more goods sold. These goods are sold in many stores, also. They get their goods from the same sources. They buy wholesale on a large scale. This gives them a lower wholesale price than competitors.
Perhaps the mega market sells the same shoes as you. Those same forty dollar shoes will sell for much less and make them more money. These shoes may sell at a thousand locations worldwide. They will pay much less than the thirty two dollars that you pay. They may pay as little as twenty dollars or less. You sell one thousand pairs per month. They may sell over one hundred thousand pairs each month, worldwide.
Customers will pay $18 less for the same shoes at the mega retailer. You cannot compete with that. If you matched their price, you would lose $10 per pair. This gives them a big advantage over you.
Most consumers will find several reasons to shop the mega retailer. Money is tight for many. Cheaper prices can make a big difference in tight budgets. There is also the attraction of convenience. There may be a huge assortment of products under one roof. You might shop for groceries and coffee pots at one time. You will also pay less for these items than most retailers. You can save a great deal of time and trouble. While your oil is being changed, you are shopping.
Mega stores offer the consumer lower prices and convenience. They do this by dealing in very large volumes of goods. They also utilize the fact that they have many copies of the same store. They may offer a large variety of things. They may specialize in a large variety of one particular thing. This may be sporting goods or music, for example. A great deal of people will benefit from the process.