- Thread starter PICHARDO
- Start date
Another super Mall for Santiago!!!!
if you have a problem with the figures, then take it up with the CEO of the company. he is the one who gave them. i do not know if you can get the program from some archives, but that is what the guy said. this company controls the sunglass, and prescription glass market in the USA. i am not speaking of 10 dollar chinese fakes. i am referring to real Gucci type stuff. to follow this markup idea, here is a little list of product markups on familiar objects of sale
1..wine in restaurants...300% markup
2..certain brands of lingerie..300%
3..designer jeans..between 200-350%
4..SOME eyeglasses..up to 1000%
5..concession stand foods, such as at a ballgame...up to 1000%. normal markup is 500%. think of popcorn as an example
6..over the counter drugs..between 200-3000%
a)antacids and pain killers..400%
b)decongestants..300%
margin on a soda at McDonalds..anywhere around 900%. a 2.29 soda costs 13 cents to produce.
your serve, PICHARDO.
Yeah, I understand that. The problem is that the merchandise is still coming from abroad, still paying shipping and still paying taxes, plus all the local taxes (ITBIS), and all the local overhead costs (employees, warehouse, and a long etc..). I don't see how it could be cheaper.
It costs a fraction to ship items in a 40' container than each piece at a time.
Overhead of a warehouse is a fraction of mall space.
It's enormously cheaper. Look how the internet is killing malls in the US! They have the same barriers as stuff coming into the DR has, just with smaller #'s...
given the fact that Amazon and ebay are drop shippers, how do 40 foot containers and warehouses come into the picture?
Your biz, your rules! When whites didn't want to sell to color people back in the days, both in the US and South Africa, they posted their rules of exceptions, while other whites posted their own of inclusions. Guess who did better at the long term?
Training required for US or EU roads means sh*t for the DR roads, and you know it. It's basically you using your own rules to segregate a sizable portion of the whole population.
So as for your question of "them" already owning a bike and already knowing the country? I guess somebody must break these news to the local car/truck rental companies and to the local aimed tourism assets... I guess we were born with the entire DR known 100% in our minds and souls as per your statement...
Never said you must change any targets, as your biz is yours and you sell to who you want. I said clearly you can expand your biz and further become a real formal biz by engaging in the local market than what you say here.
It's about covering the costs while eating steak from your prime clientele... But it's hard for you to grasp...
Education and biz experience and all...
For a poorly planned expansion? Yes! For a well planned and executed expansion? The sky is the limit...
You're exactly right about one thing: It matters only to you if you want to do it or not, nobody can force you to, or unless rules change for a reason or another...
She''s entitled to her opinion, just as lawyers seating across a court of Law have their own opinions when serving a client or the part doing the demand...
The laugh is mutual...
But what you describe is typical in the market maturity process-seeing how the DR is a VERY immature market. I'm surprised many haven't seen that. Cliff Notes Version:
- New biz opens, has high margins, does well
- Competitors see high margins and do a copy with slightly lowered margins to gain share ("Look! Same stuff but cheaper.")(How typically Dominican is THIS!?:cheeky
- Original biz has to shed profits to compete.
- Third biz opens up undercutting both.
- #1 cuts costs to compete, #2 cuts profits.
- The cycle continues.
- #1 & #2 decide they can't cut any more costs and profits; they choose acquisition of competitors and shed cost from them, adding incremental profits from the incremental revenues through economies of scale.
- Later/smaller/less capitalized competitors fail.
- Pricing and margins hit rock bottom.
- Product eventually becomes generic.
That's your take on understanding of the DR biz model and market per your own opinion...
Not the rest of us!
First fault is that Dominican biz never compete, which is the last thing you'll see in our market...
Each market has their own devices, the DR has one!
Amazon has not killed the brick and mortar store since it started. In fact, more people that shop online, are going back to brick and mortar than any other sector before from all the burns from a largely unregulated market with lots of pitfalls...
I guess to Gorgon the fact of biz that you can't extrapolate a few items profit margins to the whole gamut of goods is lost on translation, unless:
He owns a restaurant that ONLY sells wine to clients from open to close...
Sells only that type of lingerie in the store 365 days a year and does brisk biz year round...
Only sells those designer's jeans on that store and clients are a plenty...
Only sells those "some" eyeglasses with a 1,000% profit (which I hope for his sake are at least more than USD$ 20 a pop and a constant stream of sunny days to boot).
Ballgames each day of the week, 365 days a year... And everybody in the park buys at least one item!: Nirvana!
Over the counter drugs?!?!? You're having too much prozac already or is that a pill mill???
Antiacids and pain killers? LOL!!
Descongestants??? LOL!!
So a 2.29 soda costs 13 cents? Wow! I guess somebody forgot to add ice (which is made by an electric ice machine 24/7), the syrup (last I checked the price for a 5 bib was a tad high), etc...
Somebody is selling you dreams boy! Wake up!
He owns a restaurant that ONLY sells wine to clients from open to close...
Sells only that type of lingerie in the store 365 days a year and does brisk biz year round...
Only sells those designer's jeans on that store and clients are a plenty...
Only sells those "some" eyeglasses with a 1,000% profit (which I hope for his sake are at least more than USD$ 20 a pop and a constant stream of sunny days to boot).
Ballgames each day of the week, 365 days a year... And everybody in the park buys at least one item!: Nirvana!
Over the counter drugs?!?!? You're having too much prozac already or is that a pill mill???
Antiacids and pain killers? LOL!!
Descongestants??? LOL!!
So a 2.29 soda costs 13 cents? Wow! I guess somebody forgot to add ice (which is made by an electric ice machine 24/7), the syrup (last I checked the price for a 5 bib was a tad high), etc...
Somebody is selling you dreams boy! Wake up!
Easy: drop shipping to the DR is prohibitively expensive as anyone who lives here knows. One has to pay a rate of $4-5 a pound in shipping alone. You can ship 40,000lbs in a 40' container to the DR for $2500MOL. Compare and contrast $4.50lb. vs. $0.07lb., Perfesser Parse.
I am comparing the DR mall model with an in-the-DR direct shipper company. "Like Amazon," not "Amazon."
The better model comparison *might* be Wal-Mart that receives massive numbers of 40' containers and ships from warehouses to stores and to customer locations from the web. At very low costs.
Mall space is expensive, mall staffing (compared to warehouse staffing) is expensive, driving to malls is expensive and time in the DR is becoming increasingly expensive.
But the current barrier of entry for that model in the DR is the lack of efficient third-party parcel delivery services for *all* the DR "like" UPS, USPS or FedEx parcel (NOT, Perfesser Parse, "UPS, USPS or FedEx parcel.")
Pure load of bull dung, PICHARDO.
Online businesses are KILLING brick-and-mortar stores! Amazon is just one of thousands and thousands!
Hell, online stores whack DR brick and mortar stores, even with shipping. Why? You don't have to buy overpriced CRAP from a DR retailer. For the same $$$ I can buy a vastly superior, more modern, newer item online AND have it shipped here. My true cost: time. Takes a week. Of course I'm not talking commodities or hardware; that's a different story.
Read the WSJ! There is an article in it just about every day! MBA curricula now include alternative distribution models that focus on the web.
Folks actually GO to a mall to SEE an item and then go home to BUY IT for a ton less $$$. Malls are becoming showrooms for online businesses. I did it just last week while in the states!
Even CAR DEALERS, the ultimate face-to-face retail operation, are having margins destroyed by online buyers in the states.
But if you buy a US$ 100 camera that weights 3 pounds, you pay $12 in shipping (my carrier charges me $3/lb), for a total of US$ 112. If the same camera had the same price in DR (unlikely), I would pay US$100 + 16$ ITBIS = US$ 116. So I still fail to see how that would be cheaper in general.
I understand your basic idea, but I don't think there is a way a LOCAL Amazon would be cheaper than THE REAL Amazon.
I understand your basic idea, but I don't think there is a way a LOCAL Amazon would be cheaper than THE REAL Amazon.
I'm surprised you say that.
That $100 camera will NOT be $100 in the DR. That, or you don't know where to shop.
Maybe I don't know where to shop. But I'm sure as hell interested if you know a place in DR cheaper than Amazon, seriously.
My experience from both sides of the market reflects what I posted!
Bestbuy does biz both on their brick and mortar as well as online to the same tune. Most people that have learned from burns in the online shopping experience, practice safe shopping that concludes a brick and mortar with the online retail access.
Malls in America find themselves victims of their own lack for innovation. They relied far too long on aged infrastructure and little innovation in their offerings. Those that learned to pull the punches innovating themselves ever so often are today counting their profits. Online biz MUST innovate on a more increased paced or face obscurity from shoppers.
Like I said, collusion or price fixing.
What a model for real capitalism.
The DR market is NOT based on competition!
Those that try that way soon find out they are setting themselves up for major bankruptcy...
There are far too many unpredictable variables that can change the costs of the goods in short notice, worst yet leave you out of funds to replace a dwindling inventory if you go that route in the DR.
The model of capitalism in the DR adjusts to the reality of the country and system, hence why I keep repeating myself here about how unlike to the U.S. or U.K. the model really is from the basics out.
If I were to represent the DR economic model in plain Jane words so that even a toddler would grasp it, I would say that the DR biz are carried out in a manner consistent to a hedge fund, but one that's applied on an everyday circle of operations.
Price fixing would be impossible, given the volatility of the said prices.
It's more a question of how high can I go before I price myself out of biz in the DR. If the market allows for it, there's no cap or preset guidelines to halt the soaring rates.
You really need to read more, Pic.
This is from January:
Forbes:Why Best Buy is Going out of Business...Gradually
The salient point:
Even Shulze sees the handwriting on the wall: Best Buy founder?s plan to turn things around: Shrink the ?big box? and be more like Apple
But to "be more like Apple" would require a complete gut-and-start-over approach. Apple had a couple of dozen small products. Best Buy has a bazillion, many physically huge. I'd be surprised if he can pull off a private offer AND finance a total restructuring of that magnitude.
Nope! In the DR you must play by a different rule in order to be a survivor and make a profit!
Fixed prices relate to how a group or sector would set prices up to their profit, competition is just competition. Both are not plausible for the DR.
If you must call it something, then hedging would be the best descriptor...
Best Buy is not going anywhere anytime soon! Their present problem has to do with unchecked expansion based on future/projected growth that never set sail. Easy to correct the problem just like Office Depot learned on the go...
The other killer was far too much inventory, due to too many offerings unrelated to their niche. I mean, Best Buy is not the place you think first or even third to go and buy a Kitchen Aid mixer now... Static inventory is a killer for big box venues.