Re:Inefficient, but Smart
by marcus_holmes on Wednesday July 01, 2020 @06:04AM
(#23699800)
agreed, but that's not driven by high labour costs. That's driven by scale, which is a product of consolidation and vertical integration.
The big box store has (let's say) 20 deliveries a day to make, because it's serving a larger proportion of the market. So it becomes worth buying a big box truck and hiring a couple of guys to make all those deliveries.
The small retail store has (presumably) fewer deliveries to make, so they don't do delivery themselves. So the delivery is done on a case-by-case basis by the couple of guys in a pickup truck.
If the small store has more sales and more deliveries, it will eventually become worth them hiring a truck and drivers, and offering delivery to their customers. Again, not limited by labour costs, but by scale and vertical integration.
The big box store has (let's say) 20 deliveries a day to make, because it's serving a larger proportion of the market. So it becomes worth buying a big box truck and hiring a couple of guys to make all those deliveries.
The small retail store has (presumably) fewer deliveries to make, so they don't do delivery themselves. So the delivery is done on a case-by-case basis by the couple of guys in a pickup truck.
If the small store has more sales and more deliveries, it will eventually become worth them hiring a truck and drivers, and offering delivery to their customers. Again, not limited by labour costs, but by scale and vertical integration.