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Costco?
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Aeolius
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Mana: 
 Posted: Mar 25th, 2007 04:56 pm
rasin wrote:
... I am uncomfortable with an artificial market system that requires the use of middlemen...If the inclusion of middlemen make the market more efficient than they will remain due to natural market forces...

Would you trust Costco, or any other supermarket, to check the code dates on all of their products and remove out-of-date food and beverages? How about bringing stock from back rooms up into the coolers? And then there is the matter of pricing, merchandising, advertising, on-premise promotions and night calls, etc etc. At least with beer distribution, the three tier system is not artificial in nature. Vaule is added at each step.

rasin
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 Posted: Mar 25th, 2007 06:21 pm
If the supermarkets are expecting it of their distributors they would likely expect it from whoever delivers the product.  I see Lowes employees stocking shelves all the time with other products and many of these products have expiration dates how is beer unique?
 
Either the supermarkets value these services and will pay an extra price, or they will be provided at no extra cost to keep the business.  If not the supermarket should be able to go to the lower cost provider understanding that some of the extra services will not be provided and they may need to do them themselves.  If the supermarket cuts too many costs and the level of services suffers customers will vote with their feet which may result in the supermarket asking for the extra services to be added back.
 
Do beer distributors have any competition?  For example can any Budweiser distributor sell to the Lowes in Oak Ridge?

Last edited on Mar 25th, 2007 06:23 pm by

DOGGETTJA
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 Posted: Mar 25th, 2007 08:08 pm
I don't know what the answer is because that is certainly what Walmart has done to everything they buy to the detriment of all competition. Drugstores all do it. They go directly to the manufacturer if they are big enough and get their drugs at the cost of the middle man. This type of mega business makes it very hard for smaller Mom and Pops to compete. Also does not necessarily mean you are getting the best price if the company is a monopoly. They charge  what the market will bear.


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