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Why are items cheaper if brought online than in-store?

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Old 02-02-2006, 12:33 PM   #1
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Why are items cheaper if brought online than in-store?

If you check the websites of most stores, the items they sell are cheaper if you buy them online rather than go in store. TVs are a good example from comet, currys, dixons etc. Why is this?
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Old 02-02-2006, 12:36 PM   #2
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Okay,

If this is a genuine question, then the answer is simple: online stores don't need to pay as many staff, nor they need to have stores all over the UK, and there aren't as many outlays as a retail outlet would have to cope with (e.g. advertising, heating of the store, electricity bills, shop licences), etc, etc.


Pooch
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Old 02-02-2006, 12:47 PM   #3
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oh right... I once ordered a 21" CRT Samsung TV from comet online and it broke the next day. Since then, I haven't ordered any hardware online, always thinking that ordering online only gets you items that have been returned or faulty ones, rather than the newest of the new if you were to go in store and order. I guess this perception is wrong.

thanks
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Old 02-02-2006, 12:48 PM   #4
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I think V3X meant retailers with both a high street AND web presence.

The answer I think is that they have to compete with online-only retailers on their "home ground" so to speak and therefore have to get somewhere near their low prices, even if it means cutting profit. Obviously in the high street stores they are competing with other high street stores and set their prices accordingly.

But Pooch is quite right as to why online-only reatilers as much cheaper (generally) than high street ones.
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Old 02-02-2006, 12:54 PM   #5
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For online sites you don't need to rent the floor space that a shop has, it could be in your garage, or the spare bedroom or a corner of the head office of what ever company it is.
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Old 02-02-2006, 12:55 PM   #6
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Is it not because most e-tailers employ goblins, pixies and trolls do do all of the work and as they have less outgoings than a human, they simply pay them less, which is relative to the reduced price on line.

I think...

Pete.
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Old 02-02-2006, 12:57 PM   #7
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And the advantage about ordering from said websites is that should you have a problem with the product you know exactly where to send the man with big stick
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Old 02-02-2006, 12:59 PM   #8
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Shops also need to keep lots of items actually physically in the shop. Internet vendors often don't acquire the item from the manufacturer until after you've ordered it - that means they don't need to keep a lot of money locked up in stock.
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Old 02-02-2006, 1:18 PM   #9
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Quote:
Originally Posted by Captain Benefit
Is it not because most e-tailers employ goblins, pixies and trolls do do all of the work and as they have less outgoings than a human, they simply pay them less, which is relative to the reduced price on line.

I think...

Pete.
I think that's meant to be a trade secret Captain! The ministry of magic will be after you now!
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