3 ms·

Isn't so much "highest margins" as "deepest pockets". I would think that an independent business can have margins as high or higher than a chain.

• lotsofpulp 8y ago
  Assuming people value the outputs of both businesses the same (i.e. the chain will get paid just as much as the independent business), economies of scale should let the chain have higher margins.
  • monocasa 8y ago
    Here in Boulder, there's a number of retail spaces that essientially can't turn a profit on it's own. Just The North Face, Prana, or Freepeople want a Boulder location so bad for marketing purposes, they're willing to keep the store running at a loss.
    • intrasight 8y ago
      I'd not considered that in a hot location with limited retail space that companies might occupy that space at a loss and treat it as a marketing expense. But upon further reflection, I have to assume that is the case for a lot of business in Times Square, for example.