It doesn't matter if you get more customers if what you're charging doesn't cover all your costs. Larger stores can often charge less because their fixed costs are divided over more goods thus reducing how much they need to charge to cover all their costs.
Why do some people still shop at the smaller...
Best answer: It doesn't matter if you get more customers if what you're charging doesn't cover all your costs. Larger stores can often charge less because their fixed costs are divided over more goods thus reducing how much they need to charge to cover all their costs.
Why do some people still shop at the smaller stores? One reason is more personalized service. Another reason may be that the smaller store sells things they can't find at the big store. A third reason is a smaller store might sell something similar to the big store for more, but by being different, they've bought something unique, something different than what everyone else has and people often like not being cookie-cutter. A fourth reason, and this is a big one, is if the smaller, more expensive store is locally owned and the big store is some giant chain that isn't. If that's the case, then there's a strong tendency in the community to buy from them because it keeps the money in the community. Giant chain stores drain money out of communities. Local stores keep money in communities. And that money circulates rather than goes away. That practice actually makes everyone in the community richer. Think about it. If you are selling stuff and your brother is selling stuff, then if you buy from your brother and your brother buys from you, you've both still got all that money. But if you both instead go out and buy that stuff from someone other than each other, like Walmart, then you and your brother have no money afterwards and have to try and figure out how to bring more money into the house before you can buy anything else while you've got the stuff that you were both trying to sell sitting on your shelves unsold because your customer chose to go save a little money and go to Walmart instead. But had you both chosen to pay a little more, you both would still have a lot more. That's an overly-simplified example, but it's the best way I can explain how people spending a little more to buy from a small locally owned store instead of a giant outside chain actually keeps money circulating in the community and means there being more money for everybody.
7 days ago