3 ms·
That can be true, but it's also massively oversimplified. Efficiency is usually overrated - lower prices come from cutting labor costs and product/service quali
by arrosenberg 5y ago
That can be true, but it's also massively oversimplified. Efficiency is usually overrated - lower prices come from cutting labor costs and product/service quality. In some cases, combination doesn't wind up lowering prices for the customer in the long run. Once market power is sufficiently concentrated, pricing power gets shifted to the suppliers and distributors, so prices can be raised back up to increase margins.
The local delivery may lose on end price, but they also provide a ton of structural benefits. Usually the cost savings the customer is pretty marginal compared to what has been given up.