– How are stores like Marshall’s, Ross, and TJ Maxx able to sell things for a cheaper than retail price?
In: Economics
Normal retail prices are actually a lot more than what the company buys them for, they just mark up the price. When you go and buy a shirt you’re buying 1 product from the store but when the company buys a shirt they actually buy a couple hundred of them so they not only get a cheaper, pre-markup price but they also get discounts from the manufacturer for buying in bulk. Because of how capitalism works there are even some products that the companies get for less than a cent a piece but sell for upwards of 20 bucks.
Latest Answers