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It's more efficient for someone to deliver that box from Costco to several houses close to each other than it is for several people to all drive to Costco. Whe
by onemoreact 15y ago
It's more efficient for someone to deliver that box from Costco to several houses close to each other than it is for several people to all drive to Costco. When most people visited several stores then driving into town was more efficient but the big box stores really change that equation.
EX: Giant home delivery is not free, but compare how much it costs to drive to the store and do the shopping yourself and it quickly comes out significantly ahead.
- dave_sullivan 15y agoNot to split hairs, but I think it's interesting: If you drive somewhere to pick up, you pay cost of transportation, while if they deliver, they'd pay that cost. Therefore, the delivery service might raise prices making consumers believe that driving to get it yourself is a better deal. Kind of like the guys willing to drive 300 miles to save $500 on buying a car, I find people often underestimate the opportunity/transaction costs of purchases made in person.