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"That's how it works. You can also replace 3 with 'Monopoly slashes prices everywhere and relies on its cash reserves'." So are we going to have laws now where

"That's how it works. You can also replace 3 with 'Monopoly slashes prices everywhere and relies on its cash reserves'." So are we going to have laws now where big companies can't lower and raise their prices? If you want to blame anyone, blame the consumers that only shop for the lowest price. Walmart is a good example of this in the US. The other problem is that as a small business, you just don't have the resources as the big guys. For example, you might order 1000 widgets from a supplier for $10,000, but because your competitor orders 100,000, they can get a bulk discount and charge a lower price. Unless we have laws that prevent a business from getting to a certain size and keeping them all small (which I am against), there isn't any way to stop the above scenario. Similar to how software, music, and movie companies need to change their business model, so do small companies. With globalization becoming easier and easier, they need to offer something that the big guys can't. Trying to compete on price will only put you out of business quickly

mattmanser 15y ago
I didn't say that, I was just pointing out that when you get to the point of a monopoly it's very hard to get back. Worse still the big company then starts lobbying to make sure it stays a monopoly, America's phone networks are a good example of that. Also the other big problem with monopolies is that they squeeze their supplier dry as they're the only game in town. So here in the UK the supermarkets are squeezing the farmers' margins to the extreme as if they take their business elsewhere that farmer's out of business. Who else can he sell the millions of tonnes he has in the ground to? Further problems are caused by the big guys doing stuff like pumping water into chicken breast to make it look plump and increase the weight, increased revenues, customers think they're getting more for their money based solely on price/weight. I also lament the death of bakeries, for example bread from supermarkets is horrible. Donuts suck. We used to have Chelsea Buns where I grew up, the dross they sell in supermarkets is roughly a tenth of the 'tastiness', it's just crap. But all the bakers are out of business because who wants to visit ten stores and pay more when you can visit one? Over here in the UK they used to restrict how close a supermarket could be built to a town centre in order to curb their growth. I think they've relaxed that now as they've definitely got closer than they used to be. That's one example of how they used laws to try and give the smaller guys an advantage. Another example is they have restricted the opening hours, but the supermarkets are now opening convenience stores, in my city centre alone there are 6 Tescos within 5 minutes walking distance of each other. How to stop it? Should we stop it? I don't have any answers unfortunately. If I did I'd probably have a Nobel prize. EDIT: The part of me that wants it to stop is that it's all so homogenous, all the stores are laid out exactly the same, they've all got the same 6 ready meals, the same 6 meat items, the same 6 larger brands, the same 6 cakes, the same 12 brands of crisps, the same 15 chocolate bars. Where's the local produce? Where's the seasonal produce? What if I don't want a pepporoni pizza, I want a chicken one? Is life really supposed to be that fucking boring? I rarely swear here, but I feel it, really feel worried for our collective soul.
- ekianjo 15y ago
  I wouldn't compare phone networks with retail, it's a totally different situation. Phone networks are nothing but state-allowed monopolies. Retail chains win by other means. I can relate with how you feel, that it's sad to see small stores disappear and all. But it has never been easier than now to actually go and get your products directly at the farmer, if you really want to. Most people have a car and the countryside is not 3 hours drive from where they live. It is technically possible to go and get your food outside of the retail chains if you want to spend the time to do it. Most people have no interest in doing so, because they want convenience. They want to save time. They do not think it's worth it. It's pretty much a cultural problem, not a market problem. In France you still have lots of bakeries around because people still value Bread quality over price. Since bakeries are widely spread, they are reasonably convenient to access. So the business thrives, no matter if the big chain sells the bread dirt cheap next door. How do we stop it ? Start with education. Tell your children what's the difference between the supermarket food and the rest. Explain why it's important to eat well. It's the same thing as explaining to a kid why it's necessary to save for the time when they are old and cannot work anymore. Education is especially important since most people nowadays are born in cities or suburbs, have completely lost contact with the culture of food production, and just see the end product. It's going to be tough to change that state of things, if cities continue to grow.

mattmanser 15y ago

I didn't say that, I was just pointing out that when you get to the point of a monopoly it's very hard to get back. Worse still the big company then starts lobbying to make sure it stays a monopoly, America's phone networks are a good example of that. Also the other big problem with monopolies is that they squeeze their supplier dry as they're the only game in town. So here in the UK the supermarkets are squeezing the farmers' margins to the extreme as if they take their business elsewhere that farmer's out of business. Who else can he sell the millions of tonnes he has in the ground to? Further problems are caused by the big guys doing stuff like pumping water into chicken breast to make it look plump and increase the weight, increased revenues, customers think they're getting more for their money based solely on price/weight. I also lament the death of bakeries, for example bread from supermarkets is horrible. Donuts suck. We used to have Chelsea Buns where I grew up, the dross they sell in supermarkets is roughly a tenth of the 'tastiness', it's just crap. But all the bakers are out of business because who wants to visit ten stores and pay more when you can visit one? Over here in the UK they used to restrict how close a supermarket could be built to a town centre in order to curb their growth. I think they've relaxed that now as they've definitely got closer than they used to be. That's one example of how they used laws to try and give the smaller guys an advantage. Another example is they have restricted the opening hours, but the supermarkets are now opening convenience stores, in my city centre alone there are 6 Tescos within 5 minutes walking distance of each other. How to stop it? Should we stop it? I don't have any answers unfortunately. If I did I'd probably have a Nobel prize. EDIT: The part of me that wants it to stop is that it's all so homogenous, all the stores are laid out exactly the same, they've all got the same 6 ready meals, the same 6 meat items, the same 6 larger brands, the same 6 cakes, the same 12 brands of crisps, the same 15 chocolate bars. Where's the local produce? Where's the seasonal produce? What if I don't want a pepporoni pizza, I want a chicken one? Is life really supposed to be that fucking boring? I rarely swear here, but I feel it, really feel worried for our collective soul.

ekianjo 15y ago
I wouldn't compare phone networks with retail, it's a totally different situation. Phone networks are nothing but state-allowed monopolies. Retail chains win by other means. I can relate with how you feel, that it's sad to see small stores disappear and all. But it has never been easier than now to actually go and get your products directly at the farmer, if you really want to. Most people have a car and the countryside is not 3 hours drive from where they live. It is technically possible to go and get your food outside of the retail chains if you want to spend the time to do it. Most people have no interest in doing so, because they want convenience. They want to save time. They do not think it's worth it. It's pretty much a cultural problem, not a market problem. In France you still have lots of bakeries around because people still value Bread quality over price. Since bakeries are widely spread, they are reasonably convenient to access. So the business thrives, no matter if the big chain sells the bread dirt cheap next door. How do we stop it ? Start with education. Tell your children what's the difference between the supermarket food and the rest. Explain why it's important to eat well. It's the same thing as explaining to a kid why it's necessary to save for the time when they are old and cannot work anymore. Education is especially important since most people nowadays are born in cities or suburbs, have completely lost contact with the culture of food production, and just see the end product. It's going to be tough to change that state of things, if cities continue to grow.