28 December 2019

Death Spiral

Old school transactions...

*****************
The Main Street retailer says, “I sit in my store all day and wait for customers to come in and buy my inventory. My selection is limited by space constraints, I have fixed costs that include employees, rent and the costs of that limited inventory. My business relies on you to come in, try things on/out and pay for them… here.”

The online seller says, “I have a tiny staff to serve a town of a million, not a few thousand. My “inventory” is virtually unlimited because most of the time I don’t have to pay for it until I have an order from the buyer, but my rent and other expenses are tiny. I don’t need to sit in my virtual store and wait for customers to show up. And so what I sell costs a lot less...both relatively and actually.”

The local retailer depends on two distinct groups of people for the survival of his business:
  • Folks who needed or wanted hands-on service, the ability to touch and/or try things on and the chance to chat
  • People who didn’t demand those things but had no choice because there were no other options
When online showed up, the second group defected… quickly. With only the first group remaining, most local retailers are doomed.

Worse?

Retail is just one of the traditional businesses or means of generating income.

It’s not the only 1 under assault.

The answer isn’t to figure out how to be the cheapest... you can’t. The answer is to figure out alternative, non-correlated income streams.

Can you guess which one I prefer?

My Most Popular Posts

TAOST Topics

How To Trade Emotional Capital simple trading Simple Day Trading futures trading swing trading Emini Trading How It Works stalk candidate trade idea Bitcoin Daily Simple Trading Habit TAOST market update support and resistance trading intraday Process price action simple trading tools what to buy what to trade Best Retirement Investments Chart Patterns Focus New Trader Sins Swing Trade TAOST Trading principles day trading lifestyle how to day trade keep it simple risk risk management trends Are you too old Confidence FAQ FASTQ How To Invest Income streams It takes as long as it takes MAR Retirement Crisis Retirement Investment Retirement Trading TAOST Power Zones TAOST Price Clusters Trade Pattern Trading & Poker day in the life of a day trader how to trade Bitcoin learn to trade performance improvement sell signal side hustle the power of simple trading psychology trading rules trend persistence ultimate side hustle Buy Signal Charts To Watch Coil Distraction How To Trade EUR How to trade SPCE Mistakes Oh S#!t Gap Oil Optimization Process Ownership Portfolio Trade Private Equity Professional Gap Retirement 911 Risk Arbitrage S&P 500 Sacrifice Shooting Star TAOST Price Structure Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory compounding context diversification downtrend extra money financial freedom how much money how to information is the stock market random kis linear regression channel lock limit down meditate money money management negative compounding optimize thinking pandemic position size prediction quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management simple day trading strategy that works stock broker trading secrets training trend analysis