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> However I don’t think that a reseller in London should be able to offer a better deal than a reseller in say New Castle or Leeds because they are bigger. Whi
by TheSpiceIsLife 8y ago
> However I don’t think that a reseller in London should be able to offer a better deal than a reseller in say New Castle or Leeds because they are bigger.
While I agree a suburban / rural / remote customer shouldn't necessarily have to pay more, how do we reconcile this with the idea of economies of scale?
If a larger retailer moves more units and can negotiate a better price from the supplier shouldn't they be able to pass (some of) that saving on to the retail customer?
I thought this is, at least one reason, why franchises existed, so retailers can take advantage of bulk purchasing power?
- hammock 8y ago>I thought this is, at least one reason, why franchises existed Franchises are a licensing arrangement. You mean chain stores.
- james_in_the_uk 8y agoActually many franchises do work in this model. They are licensing deals and buying clubs wrapped up together.