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Tuesday 17 March 2020

CORONAVIRUS How much? Is too much?

How much? Is too much?

As most people are aware unfortunately the high streets can not compete with online shopping.

This is due to online shopping being more cost-effective and convenient to the customer but is that really the case for the local average businessman.

We are constantly hearing about why businesses are failing on the high street and online shopping seems to be the key reason.

After online shopping,  becomes business rates and council tax rates and then wages if you are a business lucky enough to be able to employ somebody to help run the business in the first place.

Then there are the other added costs such as water rates gas electric insurance purchasing of stock and delivery and so on.

But just because you are no longer using the high street for convenience and using online shops does that mean that the cost of what you are buying is actually cheaper?

Does that mean that the cost of what you are purchasing is more cost-effective and of the same quality and quantity as what you would buy on the High Street?

What does online shopping really mean when you peel back the layers?

 Mean to the customer the consumer and the actual owner of the business?

To try and make things more cost effective and keep things at a price point that people are happy with you will find that the quality of products the size of products especially when it comes to food are smaller in order to keep them at the same price point.

You find this happens a lot with food if you were to compare the size of a Twix or a Snickers far to one that you may have eaten as a child you may find that the size is actually significantly reduced and this is due to the cost of the products that are required in order to make this product in the first place.

Is the saying with products like milk most of the time people are very reluctant to pay more than 1 to £2 for a litre of milk how much of that money does the Farmer actually get after production and sales?

A lot of things now that are sold within the UK on mainly manufactured overseas in places such as China therefore the cost for posted packaging manufacturing labour costs is significantly secured.

You quite often hear businesses say if we were to have these things made a manufactured locally it would be 3 times the price that is not always the case however due to the competitive market that we live in people will aim to deliver the cheapest price possible which means that some point corners are cut.

When corners are cut does that mean a product or the service you are receiving is not 100%.  

Does that mean that the products become less?

Over the last 6 months any type of shopping as effected everyone and will do in the futre.

Only time will tell.

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