Some Reasons For Mega Store Businesses

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.

Here is how it works. You may own a retail business. Perhaps you sell one thousand pairs of shoes per month. Your price may be twenty percent less than your cost. You pay $32 for the shoes and sell them for $40. You will make eight dollars per pair of shoes. Your monthly profit is $8,000.

The mega concept uses a much smaller profit margin. They do this by a great deal of volume. They will usually have a large chain of stores. All of the buying will reflect the large number of stores that they operate. Often times, the more volume that you buy, the cheaper the price. You will sell many more items, this way, also.

A mega retailer might sell the same shoes as your hypothetical business. Their price will be much less than yours. Their total profit will be much greater, also. The shoes may be available at 1000 stores across the world. Their wholesale cost may be twenty dollars. This is much less than the thirty two dollars you pay. Your business sells 1000 pairs of shoes in a month. The mega outlet may sell over 100,000 each month, across the world.

A mega retailer may charge $22 for the shoes that you sell for $40. Their profit will be at least $200,000 monthly. They have a large advantage over you. You cannot compete with those prices, either. They are lower than your wholesale costs.

Consumers can take advantage of the lower prices from the mega retailer. In hard times, they cannot pass up cheaper prices. They will also receive convenience. You may have access to many different types of goods in one store. It is not unusual to shop for household appliances and groceries in the same store. The prices will be cheaper on both types of goods, also. You will save a lot of time and effort. Have your oil changed, while you shop.

Summary

You will find convenience and low prices at the mega store. They deal in large volumes of goods to make the prices cheap. They also have a lot of stores in many areas. You might see a very large assortment of items under one roof. There are also specialty mega retailers. They may sell items like music or sporting goods, for example. Many people will find lots of benefits to shopping this way.

by: Marc Boyajian

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