An interesting observation

[AllieBaba]

I just don't believe there's a conspiracy out there whose primary focus is to rape the poor man.

Generally higher costs are caused by something. Either because it's an item they don't move very quickly, but have to pay quite a bit to have delivered, or because they have higher costs, or something else.

I live in a town of around 400 which is the county seat. There are no freeways anywhere near here. We aren't on a trucking route. Our store manages to provide almost everything at comparable prices to Fred Meyer or WalMart in the nearest towns that have them (at least 2 hours away, any direction). The things that cost a LITTLE more are certain (not all) canned goods (I guess because they're heavier???) and any type of drug store item. Aspirin, allergy medication, etc. That stuff is sky high, and they don't have generics.

 

[Ravi]

i honestly did NOT know this....i know i would have remembered that fact...!

its distressing to hear about things like this.....but what we don't know is who is raking whom, over the coals?

for example, if these are black owned businesses, is it them? Or is it not them, but the people who sell to them wholesale?

or, if the wholeseller...is it done because of race? the higher price?

orrrrrrrrrr, is it because they are a small business and do not buy in bulk like a chain store would do or a walmart would do?


care

It's because they can.

 

[AllieBaba]

Who is "they"? Are we in conspiracy land?

 

[Ravi]

Who is "they"? Are we in conspiracy land?

Not at all. It's just one of the nasty side effects of capitalism. People exploit each other for profit, nothing new there. In many poor neighborhoods it becomes a hardship to travel to a larger and cheaper alternative. It actually happens in rich neighborhoods as well. If you have a captive audience people tend to charge accordingly.

 

[Shattered]

It's because they can.

It's not because they "can". Running a small business can cost more than running a larger business.

A small grocery store does not have the space to store hundreds of products, and some of those products have a shelf life.

The price difference between a store who purchases 6 of something vs. a store who purchases 536 of something is astounding. It also costs more to send a delivery truck out of their way with a small order, vs. being on a main drag with half a dozen large orders.

Formula, for example, has a shelf life. A small mom and pop grocery store can't risk ordering 12 cases of formula they may be sitting on for 4 years (not to mention, they have no place to store it). My guess is that they order anywhere from 6-12 *cans* at a time. Price breaks generally come in case quantities.

It's not "rape" in any shape, form, or fashion. It's the cost of doing business in the area which you choose to do it, at the size you think you can best handle.

 

[AllieBaba]

Not at all. It's just one of the nasty side effects of capitalism. People exploit each other for profit, nothing new there. In many poor neighborhoods it becomes a hardship to travel to a larger and cheaper alternative. It actually happens in rich neighborhoods as well. If you have a captive audience people tend to charge accordingly.

Yeah, and it's even worse in socialist countries, where black markets abound and gangs rule the markets.....that's much better.

 

[Ravi]

It's not because they "can". Running a small business can cost more than running a larger business.

A small grocery store does not have the space to store hundreds of products, and some of those products have a shelf life.

The price difference between a store who purchases 6 of something vs. a store who purchases 536 of something is astounding. It also costs more to send a delivery truck out of their way with a small order, vs. being on a main drag with half a dozen large orders.

Formula, for example, has a shelf life. A small mom and pop grocery store can't risk ordering 12 cases of formula they may be sitting on for 4 years (not to mention, they have no place to store it). My guess is that they order anywhere from 6-12 *cans* at a time. Price breaks generally come in case quantities.

It's not "rape" in any shape, form, or fashion. It's the cost of doing business in the area which you choose to do it, at the size you think you can best handle.

And yet Mom and Pop stores in middle class neighborhoods are much more competitive, where property values are higher.

 

[manifold]

i honestly did NOT know this....i know i would have remembered that fact...!

its distressing to hear about things like this.....but what we don't know is who is raking whom, over the coals?

for example, if these are black owned businesses, is it them? Or is it not them, but the people who sell to them wholesale?

or, if the wholeseller...is it done because of race? the higher price?

orrrrrrrrrr, is it because they are a small business and do not buy in bulk like a chain store would do or a walmart would do?


care

In this particular case, it was a CVS, which I believe is the largest drug store chain in the country.

 

[Ravi]

Yeah, and it's even worse in socialist countries, where black markets abound and gangs rule the markets.....that's much better.

It probably is worse. Not sure why you brought this up. I think it's a shame that grocery stores often move out of neighborhoods of poor people and they end up having a higher cost of living because of it. Makes it that much harder to get out of poverty.

 

[Shattered]

And yet Mom and Pop stores in middle class neighborhoods are much more competitive, where property values are higher.

Maybe in your neck of the woods, but certainly not in MY neck of the woods, and I'm considered 'upper middle class'.

 

[AllieBaba]

I brought it up because you stated it was a problem related to capitalism. My point is that until there's another alternative, capitalism has all the other "isms" beat by a mile.

 

[Ravi]

Maybe in your neck of the woods, but certainly not in MY neck of the woods, and I'm considered 'upper middle class'.

The property values aren't higher?

Why don't you give it a try. Shop at a drug store chain in both neighborhoods and a 7-11 in both neighborhoods.

 

[Ravi]

I brought it up because you stated it was a problem related to capitalism. My point is that until there's another alternative, capitalism has all the other "isms" beat by a mile.

That's nice, Allie.

 

[Shattered]

The property values aren't higher?

Why don't you give it a try. Shop at a drug store chain in both neighborhoods and a 7-11 in both neighborhoods.

Been there, done. (Oh, and we don't have 7-11's).

Small items that are ordered in bulk quantity that don't have a shelf life are going to cost the pretty much the same from area to area. Larger items that have a shelf life, and can not be ordered in bulk quantity due to space issues are going to cost more.

Someone else also mentioned security costs.. "Better" areas don't require security personnel on the premesis..."Less than favorable" areas DO. That's a cost that needs to be taken in to account when deciding what to mark an item up for sale, in addition to the costs of electricity, payroll, even plastic bags, and register receipt tape. None of those things are free, and also cost more in smaller quantities when you have to purchase them.

 

[Ravi]

Been there, done. (Oh, and we don't have 7-11's).

Small items that are ordered in bulk quantity that don't have a shelf life are going to cost the pretty much the same from area to area. Larger items that have a shelf life, and can not be ordered in bulk quantity due to space issues are going to cost more.

Someone else also mentioned security costs.. "Better" areas don't require security personnel on the premesis..."Less than favorable" areas DO. That's a cost that needs to be taken in to account when deciding what to mark an item up for sale, in addition to the costs of electricity, payroll, even plastic bags, and register receipt tape. None of those things are free, and also cost more in smaller quantities when you have to purchase them.

But the costs are the same in the different neighborhoods to the store owners. Maybe the insurance is higher in a poor neighborhood, I don't know, but I'm guessing they are pretty equal because of the value of the property being insured.

I guess you haven't been in any poor sections recently, I never see any security patrolling the stores. That would be more likely in a middle class or upper class neighborhoods.

Regardless of which of us is correct, and we probably both are to an extent, can you at least see how this drags people living in poverty down even further?

 

[Care4all]

It's because they can.

i was also thinking that this ''could'' be part of it....primarily because people tend not to drive as much in lower class areas....they have a ''captured'' audience, who does not have the ability to competitive shop in another neighborhood, or a number of stores as their competition....

more than likely, the most of it... is the cost of their Insurance against robberies and vandalism and their costs of security, and their ''shortage'' costs from shoplifting....all of these put in to the cost of product....it is a much, much higher ''risk'' to operate a business in a troubled neighborhood, no matter the color of the individuals there....and insurance companies charge for it.

i did mention earlier, that lower rents should compensate for some of these costs though....

care

 

[Shattered]

But the costs are the same in the different neighborhoods to the store owners. Maybe the insurance is higher in a poor neighborhood, I don't know, but I'm guessing they are pretty equal because of the value of the property being insured.

I guess you haven't been in any poor sections recently, I never see any security patrolling the stores. That would be more likely in a middle class or upper class neighborhoods.

Regardless of which of us is correct, and we probably both are to an extent, can you at least see how this drags people living in poverty down even further?

Why bother with security in a middle, or upper class neighborhood? Those people aren't as likely to steal as those living in poverty stricken neighborhoods without jobs.. That's also why you see those same shops locked down at night behind gates and bars, and why in the upper class neighborhoods, such actions are totally unnecessary.

All those costs factor in to deciding what to sell an item for.

 

[Annie]

i was also thinking that this ''could'' be part of it....primarily because people tend not to drive as much in lower class areas....they have a ''captured'' audience, who does not have the ability to competitive shop in another neighborhood, or a number of stores as their competition....

more than likely, the most of it... is the cost of their Insurance against robberies and vandalism and their costs of security, and their ''shortage'' costs from shoplifting....all of these put in to the cost of product....it is a much, much higher ''risk'' to operate a business in a troubled neighborhood, no matter the color of the individuals there....and insurance companies charge for it.

i did mention earlier, that lower rents should compensate for some of these costs though....

care

You are correct, at least in part. There is a lack of competition in poor neighborhoods. There is also more spoilage, as those that 'walk' for groceries can only buy so much at a time. Oftentimes the freshness of produce/meat is inferior, as the grocer himself buys small amounts. Crime is higher as are insurance rates. The 'low rents' are a fiction though, considering the profit per square foot-they are high.

What's always struck me as ironic is that for the most part, 'community activists' have seldom worked at setting up cooperatives or mass buying systems in these neighborhoods, while the areas they generally live in, have cooperatives a plenty.

 

[Ravi]

Why bother with security in a middle, or upper class neighborhood?
Those people aren't as likely to steal as those living in poverty stricken neighborhoods without jobs..

Have you ever heard of teenagers?

That's also why you see those same shops locked down at night behind gates and bars, and why in the upper class neighborhoods, such actions are totally unnecessary.

Because they can have monitored alarm systems perhaps.

 

[Anguille]

I live in a mostly white, middle-class neighborhood and town. However, I'm not that far away from some poorer, minority dominated areas and once in a while, I find myself picking up a few items in a grocery or drug store in one of these areas out of convenience. My observation is this: Stuff costs more in the poor neighborhoods. Everything. Milk, bread, eggs, tylenol, baby food, you name it. Sometimes the disparity is significant like just a few days ago when I spent $17 for a 1oz bottle of infant mylecon that i can get for $14 at my local drug store. Just one more example of how poor people get the screwgie I suppose.

It's been this way for years. The Denver Post recently had an article about it.

Price disparity in groceries
Grocery staples in low-income areas are no cheaper, and sometimes cost more, than the same items in more-affluent areas.
By David Migoya

http://www.denverpost.com/business/ci_8818445