Posted by kcm.MN on November 05, 2018 at 05:44:57 from (174.219.155.248):
In Reply to: Prices Question posted by moonlite37 on November 05, 2018 at 04:45:55:
Part is also from overhead costs. A brick-and-mortar business normally has higher insurance costs because of on-site customers, whereas an online-only store has only online customers (no slip-and-fall accidents, for example).
A brick-and-mortar business also depends on being in a good location. That means having high-priced real estate and an eye-appealing building. All of this relates to higher initial and long-term costs, including taxes.
Brick-and-mortar are normally also at the mercy of the local town/city -- meaning, they have to often charge multiple taxes that online warehouses don't. Online warehouses can choose where they set up shop, including the state.
Brick-and-mortar businesses MUST KEEP MONEY TIED UP in inventory, including shelving and the miscellaneous costs involved, such as having to set up customer-appealing displays.
Brick-and-mortar business normally has a client base that is limited to the local public. Online has the potential to sell world-wide.
These and many other facets all figure in to the pricing.
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