LOW FIXED COST STRUCTURE

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papre12
Posts: 110
Joined: Thu May 22, 2025 6:24 am

LOW FIXED COST STRUCTURE

Post by papre12 »

THE LOWEST PRICES

They always try to get the best price to maintain their competitive advantage. They maintain a constant search. They don't "lock in" to any supplier or wholesale chain.

MINIMIZED PROFITABILITY

Another important point is the high product turnover. They shop minimize profitability as much as possible. According to Calvete, they earn 8% compared to other retailers who earn 10% with their own brands.

TIRELESS WORKERS

Their motto is work, work, work. There are extended hours from . The example starts at home; the owners themselves and their immediate family members adapt to this arrangement. There is a two-shift system.


90% of the stores are rented, they don't spend on advertising, and they have the fewest employees possible per store. According to official data, the average is two people per establishment.

WIDE PRODUCT VARIETY

Discount supermarkets, their main competitors, carry an average of 500 items in each store. Chinese supermarkets, on the other hand, typically have 1,200.

PERMANENT COMPETITION

There is fierce competition to always offer the lowest price. They offer sustainable offers over time with second-brand brands, in addition to discounts on first-brand brands, even though they know demand is guaranteed.
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