Re: OT: Tractor Supply

Posted by John (C-IL) on April 01, 2006 at 05:33:26 from (64.12.116.74):

In Reply to: Re: OT: Tractor Supply posted by davpal on March 31, 2006 at 21:12:00:

davpal is pretty close to the mark on this one. We all need to feel fortunate that there are companies willing to take the risk of building a store and stocking it with almost every conceivable item the consumer will ask for at a decent price. Then sit on that inventory until someone shows up to buy it, pay someone and provide benefits for that person(s) waiting for the customer to come into the store.

I'm in the retail feed business. I am constantly asked what a person has to do to get a discount. I am willing to give a discount on pallet quantities and higher margined items, but if all you are after is a couple bags of grain then you need to look elsewhere for cost savings.

We load unit trains with 4000 bushels per car and our loading cost per bushel is cents per bushel. I would imagine that when I sell a bushel of corn in a bag my cost to bag and handle that bag of grain is right at 50 cents per bag.

I guess my point is that margins are not what most consumers think they are. The only way you might get a discount is if you ask, but don't be offended if you are refused.

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