Originally Posted by lee_44106
I actually knew what you had try to say, but was somewhat giving you a hard time.
But don't fool yourself into thinking that people who grow up in a Judeo-Christian environment are incapable/not actively doing shady stuff.....World history from the past 200 years has ample history of such.
Sephora (I think, it may be another retailer) had to close shop in Spain because people were going in, using the samples, and just leaving. Moral of story: study new markets. One retail model does not fit all. Ikea in China is another hilarious retail story.
Originally Posted by Dbear
This has been happening since forever.
It's why Best Buy is closing stores and going out of business.
The Best Buy experience sucked, so they went out of business. They didn't take advantage of what a B&M can offer, and consequently, suffered. Same day, free delivery, for example, would be an obvious thing to set up for a B&M consumer electronics store. It's a service that you can offer for local customers at a relatively low costt, that an online only store with a warehouse in dickweed, New Jersey, cannot, even if they paid top dollar. Cheap and free or cheap installation for anything from air conditioners to home theater systems. Same day pickup and delivery for defective merchandise on they massive ripoff you call an extended warranty. They could also offer a price match guarantee, which takes away most incentives to showroom. Remember, online only businesses have lower overhead, but they eat a fortune in shipping and handling. You ever try to ship a t.v. by UPS? It's soooooo expensive.
Definitely don't make the Borders mistake (outsourcing their online distribution to Amazon, effectively making them a completely worthless company).
Originally Posted by Find Finn
People showrooming have already done this and spend their time doing it, so why not just buy it then and there.
If you add up what your time is worth that is a lot of wasted time.
It's not time wasted unless it's opportunity time
lost. If you weren't going to be making money during that time, you've lost nothing and gained something by showrooming.
Originally Posted by Gavin
How would you guys suggest B&M stores compete in the online market? Prices are generally set based not only on the cost of goods, but other considerations like local rent, utilities, staff salaries, maintenance, etc... all of which varies widely based on where the store is located...but a store that has to set their prices higher to operate in, say, NYC has to compete against other retailers online, whether they're in smaller cities that helps keep costs down or just online-only.
With all due respect, this is a cop-out. One thing that I do is compare prices (of clothing and accessories) everywhere I go. And NYC prices are actually usually better than prices in smaller markets for the same goods. If your prices are not good in NYC, the customer will just walk a few blocks to get the same thing. Vendors give "exclusives" to specific neighbourhoods only, and even then, sometimes say "fuck it", and sell the same goods to different retailers on the same block. I know this because I've actually walked Manhattan blocks and visited every single store and inventoried entire stores (trust me, it's a grind. I do not do this when I go shopping for pleasure.) Also, being in a larger market allows you to sell more volume. This goes double for the internet side of your business. So, you sacrifice margin for volume. Of course, things are always a gamble, and you'd better have your sales projections pretty accurate, or you could easily end up in the red.
I know that Canadian retailers suffer because they have some high taxes, but clearly, matching prices with US retail prices makes sense if you want that market. Ssense, for example, does this. Yes, you eat some of the costs. But the alternative is to not have access to a market 10 times the size.