If someone opened a store and just sold stuff at cost, which undercuts every other competitors by alot. Would this not for the big corps to come way down on their prices?
If someone opened a store and just sold stuff at cost, which undercuts every other competitors by alot. Would this not for the big corps to come way down on their prices?
I sell locks at my work. We get our stuff through a distributor at a set price discounted from MSRP. We are not large enough to buy direct from manufacturer for these locks. Amazon and home depot are selling the same locks cheaper than we buy them from the distributor because they can buy direct and buy more volume than even our distributor. You would need to buy in volume higher than Amazon which would be difficult because it would require a ton of up front capital which you would not really have a way to make back because you are making no profit. This isn’t the case for everything but it’s particularly bad with residential smart locks.
Anyway to answer the question no it would not drive Amazon’s prices down because at cost we would still be selling them for more than Amazon.
Hello fellow locksmith. We’ve basically given up on selling residential Smart Locks and Padlocks in our shop. For pretty much the same reasons you’ve described. Our prices would be outrageously higher.
Fortunately we deal in car keys, and dealerships still give us plenty of breathing room to beat them on parts, service, and lead times.