A Puzzle: Why Do Retail Chains Charge Uniform Prices Across Stores?
Franchises control the supply chain.
Franchise operators have a wider range of products then their clientele. So, on the margin, shelf space devoted to certain items can be adjusted by quality and price. Some franchises may order more gourmet coffee and less plain, adjusting the boundary on the coffee counter.
It is internal variance, within store variance can be accommodated if the external market confines the franchise toa channel sace. The 7/11 franchises is bounded in index space (time and location). They get busy morn or night, and sell no more than an armfull. It is a limited retail space, and they control it by quantizing the supply chain accurately.
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