Do you buy at the local specialty store or do you order online?

The "problem" with the local dealer is the sometimes completely crazy margins... recently the sanitary company wanted to tell me that they only applied a 30% markup, they earn nothing at 30% because they have to take responsibility for 5 years etc... since it's about a total amount of over 20,000 EUR, more than 5,000 EUR (just for the material!) profit for me is more than "earning nothing"...

Many dealers are quite willing to negotiate prices... certainly not as much as a few years ago, but they also want to make their business.

For me, it is important that both have fun with the matter. The dealer may well be more expensive than prices on the internet, but only if he reasonably justifies it. If someone starts telling me that online retailers don’t keep anything in stock, it’s difficult with defects, etc., then I simply don’t take that person seriously, as they obviously haven’t dealt much with online trade in recent years.

Online trade (there are plenty of suitable shops!) has meanwhile become a specialized trade, only that you hardly have to leave the house anymore to shop.

But if the local dealer tells me that he disposes of all packaging, leaves everything clean after the work is done, then I find that okay, as these are, in my opinion, the things through which the local dealer can differentiate himself from online trade.

I am an online retailer myself. We buy almost everything online. We also live in the middle of nowhere. Therefore convenient and affordable. Just bought a wild fence - completely online of course.

I see it somewhat ambivalently, as we also had several retail stores in the company and I therefore know the margins and the revenues of stores. The online retailer needs far less staff and also has no expensive showroom areas. He also does not have to have full staffing from 8 a.m. to 8 p.m. In addition, he is located somewhere in an affordable commercial area instead of in highly frequented expensive locations. Due to the volume, he also gets better purchasing conditions from the manufacturer.

And then there are those who look at everything in the store and also get advice, only to buy online afterward.

We always first look around in the specialized store ... and then order online as often as possible.

That way, you are largely on the safe side and also save something.

That's how the remaining specialized stores get destroyed. Better to renegotiate if the price difference seems too big.

So the retailer basically cannot be cheaper, unless shipping is done by freight forwarder and it is picked up in the store.

On the other hand, an online retailer is always in direct price competition, because only the one who is the cheapest, has the goods in stock, or offers other advantages (e.g., Amazon) does business.

On the other hand, as a private person, I am of course also striving to get as much as possible for my monthly budget.

the plumbing company wanted to tell me the other day that they only "marked up by 30%", they earn nothing at 30% because they have to put their neck on the line for 5 years etc... since it's about a total amount of over 20,000 EUR, more than 5,000 EUR (just for the material!) profit is for me more than "earning nothing"...

30% margin in this sense is not the profit; various costs are deducted before that.

The online retailer requires far less staff and also does not have expensive display areas. He also does not have to have full staffing from 8 a.m. to 8 p.m. In addition, he is located somewhere in a cheap commercial area instead of in highly frequented expensive locations. Because of the volume, he also gets better purchasing conditions from the manufacturer.

This varies greatly depending on the business. But the general public significantly underestimates the online costs. They are by far higher than some physical stores. What most forget are the enormous online rents we pay. So we have the warehouse rent and the rent on platforms like Amazon, eBay, and Google. These are amounts that alone are double my former store rent. Then there is the warehouse, which is cheaper than in Munich city center, but the space is usually larger. Customers do not forgive the online retailer if not every size of sock A is available. So you need endless space. Well, you also need packers. They want their money too and are not much cheaper than regular salespeople. You also cannot use slow workers, so it is better to spend 2 euros more per hour. I see it simply. Anyone who as a business owner is not online will sooner or later have to close. Of course, there are exceptions. What I notice about traditional stores is the rigidity of the owners. They do not inform themselves about prices, offers, and new suppliers. They stew in the same broth for years. That is our biggest price advantage. Many stores buy at prices that are way too high.

Not everything kaho writes can be understood by me, may be true. Certainly the last paragraph is correct, the specialist trade sometimes has higher purchase prices than online retailers' sales prices. Karsten