.
I understand the economics of retail. I should. I was a retail slave forever, after I was a restaurant slave for twenty years.
In essence:
- Somebody does market research and the manufacturer creates the product idea.
- The manufacturer pitches it to distributor who creates fancy brochures and gets samples.
- Distributor sends out sales folks to pre-sell the product to the retailer.
- Sales folks take the orders back to distributor, who places the order with the manufacturer.
- Manufacturer fills the orders and sends them to the distributor, who, in turn, sends them to the retailer.
- The retailer has to pay for the stuff, so it's put out on the floor when it arrives in August.
- That's why we see Christmas merchandise alongside back-to-school and there are no bathing suits available in the summertime
(they were sold out by May 1).
This wouldn't happen in a barter system. But then we wouldn't be able to afford half of the things we have today.
why do I understand these things?