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No, it's not about economies of scale. It's about non-monetary costs. What I'm saying (using your analogy) is that Starbucks actually works hard to get good su
by wisty 14y ago
No, it's not about economies of scale. It's about non-monetary costs.
What I'm saying (using your analogy) is that Starbucks actually works hard to get good suppliers. If you open a coffeeshop and use beans from the local supermarket (hoping to pay market price - it's a market, right?, of course you pay a lot more and get worse quality than if you spend some time tracking down a good supplier.