Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In the area in SC where we used to live there's a convenience store chain that accepts cash at the pumps. Pretty handy for those without cards, or that want to pay with cash.
The one thing that I'll disagree on now is fax security (part of my business involves dealing with credit card processors, and I have to deal with this constantly). There was a time when that was kind of true, but analog is only analog until it gets to the CO, and most companies don't use actual fax machines anymore.
The every one of these processors is using some cloud fax service, and so am I, so they upload a file to their fax company (who stores it as a pdf or tiff image file), who sends it to my fax company, who emails it to me as a PDF. At the end of the day two more companies have this plainly readable data than would have if they had just emailed it to me in the first place.
It's one of those situations where you know the destination will also be analog. We deal with FERPA and HIPPA, so you can't email that type of info unless the email is encrypted. We don't use encrypted email at our school, so the only other say (other than snail mail) to securely send that info is through analog fax. The places where these faxes are sent to also use analog faxing as well. Totally different situation than if we were faxing to vendors or the sort.
Buying online has all the advantages of price, reviews, in stock, fast delivery and easy return policy. I have returned mattresses and lamps from both Overstock and Amazon and was extremely pleased with their customer service and home pickup. Cannot say that about all B&M stores, plus I did not have to drive to the store and wait in line to return (an event in itself).
Nobody has challenged the idea that online shopping is more convenient. Of course it is. Which is why B&M will never regain popularity unless there was a significant change in how B&M works. It's just merely the idea that B&M could possibly survive and compete with online shopping if they gave deeper discounts, especially to those who don't use credit cards and like to pay with cash. In addition to discounts for cash payers, they could also give the option of online return even if the product was purchased in house. I think some B&M stores probably do that anyway.
B&M can't afford using discounts to attract online folks for many reasons:
- their overhead is much higher - the building and the employees, so their margins aren't so great
- they'd cannibalize existing business.
B&M sells convenience, but at a higher price. Most folks hate online returns ( do YOU like dealing with the post office?), so I can't imagine how they'd be an attractive feature.
B&M can't afford using discounts to attract online folks for many reasons:
- their overhead is much higher - the building and the employees, so their margins aren't so great
- they'd cannibalize existing business.
How did they pay for that overhead before the online entity? You can say that more customers came to the store, but they're still getting customers through their online store, which would help to offset the overhead of the B&M. Also, know that there's a transaction fee associated with 100% of the transactions online. No transaction fees with cash. I believe this is why Amazon is starting to setup cash centers where people can start paying for their online orders with cash instead of credit. It's a way to get around those fees.
Quote:
Originally Posted by bigbear99
B&M sells convenience, but at a higher price. Most folks hate online returns ( do YOU like dealing with the post office?), so I can't imagine how they'd be an attractive feature.
It's not always a higher price at the B&M. I've ordered stuff from Walmart.com before (because that is one store I hate going into), and I've seen the same item at the B&M for the same price. As matter of fact, then I'm having to add in shipping charges with the online order unless I have it shipped to the store. Which, speaking of ordering online and having it shipped to the store - that is another reason to keep B&M going. Some people just don't live in a location where having a package left on their door step is safe. Those people tend to actually go to the store for these products.
As far as the returns, how much of a % of the stuff you buy you wind up returning? I'd say out of the stuff I buy, I might return 0.009% of it.
Doesn't mean the B&M has to be a huge store with a huge overhead. It can be a much smaller store with a few items, smaller overhead, but enough to where it invites foot traffic in. As a consumer, you don't want everything online, because it's going to hurt your local economy. And there are always going to be times where you need something right then and there, and ordering it online means having to wait for it to ship to you. All I'm saying is, there are options for successful businesses to maintain a B&M presence if they want one, and maybe even entice more foot traffic in.
How did they pay for that overhead before the online entity? You can say that more customers came to the store, but they're still getting customers through their online store, which would help to offset the overhead of the B&M. Also, know that there's a transaction fee associated with 100% of the transactions online. No transaction fees with cash. I believe this is why Amazon is starting to setup cash centers where people can start paying for their online orders with cash instead of credit. It's a way to get around those fees.
Doesn't mean the B&M has to be a huge store with a huge overhead. It can be a much smaller store with a few items, smaller overhead, but enough to where it invites foot traffic in. As a consumer, you don't want everything online, because it's going to hurt your local economy. And there are always going to be times where you need something right then and there, and ordering it online means having to wait for it to ship to you. All I'm saying is, there are options for successful businesses to maintain a B&M presence if they want one, and maybe even entice more foot traffic in.
The "transaction fees" are just credit card fees and transparent to the buyer who pays the same, credit or cash.
There's much to discuss here, but I don't think a discussion would be very fruitful. Let's just agree that we have different views of the economics of retailing, online or not.
Look how many local stores are now closing because of their (the company's) Internet sales.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
