Monday, June 22, 2009

"Cheap" Merch now, costs you later..

MSNBC made an interesting documentary about retail-theft rings, called "Boosting for Billions".
It basically outlined the overall impact of retail theft and how it not only screwed over big-box stores. It affects everyday people, like you and I.

Besides taking a large chunk of profit from big-box stores like Wal-Mart and Walgreens (US), it drives up the cost we end up paying on our everyday stuff, like razors and whatnot. Not only that, but while watching this show, it made me think about our underlying costs and how it affects us when we have an item stolen.


It hurts a shop like ours, tenfold. We typically do not get the same reduction in wholesale costs the bigger shops do (we pay more $ than they do, to offer the same product in the competition pool; so we must take a much greater loss in profit to remain competitive); so when something is stolen, we have to recoup the costs one way or another. We can't simply take a "loss" like most bigger stores can, off their taxes... we increase a different product's cost to compensate the loss. The big boys usually do the very same thing, but not only with 1 or 2 products; they do it with an entire -line of products-. So essentially, the stolen products multiply from the hundreds, into thousands and beyond; and we all pay for it.


Who buys stolen stuff? Not me!
Don't be so sure of yourself. Most stolen goods are sold to "mom and pop" shops that you find in every town and city. These are seemingly "indie" shops that carry an array of anything from your staples like milk and candy to DVD players and iPods.
Some of these places only carry a few pieces to being fully stocked and appearing to be licensed to carry such products. (Most people refer to these as "convenience stores" or "variety shops" and/or "flea markets".)
But How do you tell? In most cases, it's pretty hard. The staff's knowledge of their product-line is typically a good indicator. If they can't tell you with certainty about a product's use or other special details, they're probably carrying stolen goods... or they're completely stupid. Either way, I wouldn't buy from them! :)
To be sure you're not buying stolen merch, only buy from reputable shops that have a long-standing history in your neighborhood for being knowledge and/or reliable about their product line. Never use price as an indicator for quality.

Why should I care? I just want the cheapest price.
This type of attitude fields these rings and is particularly what makes them thrive.
Buying stolen merch, you're essentially paying for nothing. The actual COST of any product usually has the following formula:
- Production (what it cost to physically create)
- Licensing (payment to the inventors of the product)
- Distribution (payment to the companies involved in sending/selling the product all over the world)

When you buy a stolen product, you pay for the following:
- Some skid's drug habit
- Increasing the future price of the said product

I don't know about you, but the difference between giving my hard-earned dollars to some dirtbag thief over a company/individual that works hard for their money, is a no-brainer.

I'd rather pay a few extra bucks and contribute to a cheaper product later on down the line!

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