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Posts: 11,700 | Thanked: 10,045 times | Joined on Jun 2006 @ North Texas, USA
#19
Originally Posted by rattis View Post
I don't know all the details because I'm not a math / business major (I prefer dead things, archaeology), but there is a problem with 2 ice cream vendors on a beach.

Whole beach is 1 mile long. 2 vendors. They set up in the middle, and make more money with their stands next to each other, than if they're stands were on opposite ends of the beach. Has to do with lines, waiting and selection. Vendor 1's line is too long, so people go vendor 2 who has the shorter line. Vendor 1 carries a couple of things vendor 2 doesn't, vice versa. At least that's how it was explained to me, or close enough.
I get the scenario, but IMO it's too simplistic to be completely relevant for modern retail... especially in cases where the product mix doesn't differ enough to support that scenario and where customers (like myself) don't really care as much about brands as we do value and service.