No. of Recommendations: 6
https://www.youtube.com/watch?v=vQpUV--2Jao&ab_cha...Clearly promoting a specific take on DG (towards the end), with the conclusion "DG is bad". But interesting in part because he first cites specific numbers like typical rent, staff salary, etc so one can begin to see how DG is profitable.
Quick notes:
- DG has very low rent in its typical very rural locations, and in its very urban, economically disadvantaged, locations
- DG has very low staff ratio who are mostly paid minimum wage.
Cost to run a store is low.
- DG doesn't support many product choices, but has a huge market for the limited choices it does support and hence huge pricing power
- DG isn't always cheap(er), part of their profit is from taking advantage of them being the 'only game in town'. This can also be a higher 'per unit' price, e.g. they sell smaller sizes of laundry detergent because although their customers might like to buy larger sizes at lower per unit price at say a more remote Walmart, they (a) don't have the cash and (b) DG is more convenient. These customers subsequently come back frequently to DG.
- DG sucks money out of these communities, as opposed to local small businesses where the money is respent within the community
- "DG is bad" is the conclusion, along the way is an interesting narrative
