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> If the author studied the economics of airport shops they would no longer be confounded. Can you elaborate? I concur with the author. If there were more reas
by voisin 5y ago
> If the author studied the economics of airport shops they would no longer be confounded.
Can you elaborate? I concur with the author. If there were more reasonable priced shops, I would probably spend 3-4x what I do. Smaller profit but greater wallet share.
- captainredbeard 5y agoOne high profit “receipt” is better than several smaller profit receipts summing to the same total. Why? Lower transaction cost.
- boberoni 5y agoI'm no expert on the economics of airport shops, but here's my take: Rent prices for airport shops are high and space is limited. If you reduce your prices to be more reasonable, you are relying on volume to make ends meet. This is challenging because space for inventory is limited and expensive in an airport. So, most shops in airports either (1) have to charge high prices to make a profit, or (2) aren't actually in the business of making a profit and are instead a marketing tactic for big brands. There's a lot of foot traffic in airports, so the big luxury brands will be willing to spend money on an airport storefront, even if it comes out as a net loss on sales.
- toxik 5y agoWhich is funny, because the airport versions of most luxury stores are just way worse than the regular stores. Poorly attended to and somehow always manage to look cheap.