Can anyone explain this to me>Make a store that sells anything like for example shoes>You have to buy like a shit ton of shoes>You have to pay for the store space>You will never sell all the shoes you have for sale>You have spend a shit ton of money of the shoes you're going to sell>Somehow you still make profit out of it despite not selling like 85-90% of your shoes everThere's no way that people who run stores are real people that actually make profit doing it. I understand it in big cities, but seeing shit like that in small cities makes me think we're living in a simulation.
>>33781953The markup is like 200%-300%But yes it does seem unsustainable
>>33781959It's more than 300%.
>>33781953A big part of operating a retailer is in selecting stock that will actually sell and never stocking anything that doesn't.You've given the example of shoe retailers, which often use a sale-or-return business model with their suppliers. This means the shop gets sent a big pile of shoes at no cost, and only pays the manufacturer when they sell. This means the manufacturer gets free retail space with no expectation for volume discount, and the retailer gets free stock.I used to run a small computer shop, and Asus were great for this. They would send us one or two of each of their popular laptop models, and every time one sold we told them, they invoiced us and also sent another one to replace it.
>>33781953>Shoe sold for $200>Shoe manufacturing costs $20 after scale production>Manufacturer has list of people who will 100% for sure buy bulks of shoes regularly>Store has paid for manufacturer's cost and profit, transportation, storage, taxes, costed $150 in total>Store has table that says "2 people will buy for each dollar you discount", modeled after negative exponential curve.>Store checks if it needs to sell fast or slow to maximize profits in a year.>Adjusts sales having up to $50 profit margin to play withStores never lose. Literally the only time they ever lose is when they take loans and can't manage to catch up profits to the rate of interest. This is literally how capitalism works, a percent of all matter, every time it changes hands, is reserved to plain profit. The more it changes hands, the more profit snowballs into it, and the problem is, in this zero sum game value is only set when there is a difference in power acquisition. Thus money only flows in one direction, things become impossibly expensive, money becomes worthless and the wealthy keep their proportional wealth.
>>33781953I don't know about any of this, because I buy the same make, style and size of shoes every few years on Ebay from the same supplier. I haven't been in a brick and mortar store to buy shoes in twenty years. Such stores seem to be an obsolete model, so either come up with a storefront idea in a growing sector or start an online business instead.
