Subject:
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Re: Tell us (was: Found Discounted 5978; and Clearance Question)
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Mon, 7 Feb 2000 02:53:38 GMT
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Reply-To:
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LPIENIAZEK@NOVERA.COMihatespam
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Viewed:
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776 times
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Erin Windross wrote:
>
> In lugnet.market.shopping, Larry Pieniazek writes:
> > I don't think you guys really want to know the answer to why the US
> > stores seem to be more concerned with moving merchandise out and why
> > they can afford to give steeper discounts to get stuff to happen, do
> > you?
> >
> > If you really, really, really do, ask again in off-topic.debate and I'll
> > tell you my theory. But you're probably not going to like it.
>
> Ok, why are the US stores seem to be more concerned with moving merchandise
> out and why they can afford to give steeper discounts?
Well, in my opinion, the US is a more market driven economy and so
stores are more concerned with financial results. Managers are managed
more on effective use of capital, and less on compliance with government
regulations. Also, the US sources more goods internally. This makes the
cost of goods lower so more discounting is possible. Also, US stores are
more profitable overall so have more flexibility to cut generally higher
margins.
These are all related to a less regulated business environment overall.
Typically, the more regulated the businesses are, the less they
discount. Also the less they compete with each other for sales. More
regulated businesses can't afford to discount, they are trying to hang
on for deal life.
Just my dogma...
--
Larry Pieniazek - larryp@novera.com - http://my.voyager.net/lar
http://www.mercator.com. Mercator, the e-business transformation company
fund Lugnet(tm): http://www.ebates.com/ ref: lar, 1/2 $$ to lugnet.
Note: this is a family forum!
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