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> So what's the solution to this problem? There’s no problem; Costco is an intermediary that brings value and so it takes its cut. Why do people buy from Amazo
by hk__2 4y ago
> So what's the solution to this problem?
There’s no problem; Costco is an intermediary that brings value and so it takes its cut. Why do people buy from Amazon, who is also "just" an intermediary? Because you can buy millions of different products from one single place instead of having to go see each manufacturer where you wouldn’t be able to buy individual items anyway.
This situation is a lot more effective than forcing each manufacturer to develop its own customer-facing business with all the costs and logistics that go with it.
- int_19h 4y agoThe logistics part is value that Costco added by itself. They're entitled to fair compensation for that part. But the "so big it can strongarm suppliers into pricing" is not value added - it's value taken from someone else.
- hk__2 4y ago> But the "so big it can strongarm suppliers into pricing" is not value added - it's value taken from someone else. It’s money taken, not value. And giving you the customer the ability to buy something cheaper is value (for you, at least).