Jewish business aren’t trying to deplete your finances

amother

OP ↓

Sun, Jun 16 2024, 2:14 pm

This topic has come up so many times and it’s really frustrating to me.

It seems that the ppl bothered by this the most are clearly not aware of how businesses operate, so I’m going to say this and get it off my chest.

We are not raising our prices davka because we know ppl will buy from us. We aren’t raising prices because we’re greedy. We aren’t raising prices because we’re obnoxious. Our prices are what they are because it’s the ONLY way to make a profit.

We make calculations to come up with a price that is just right. A price that leaves us with a profit instead of a deficit.

Nobody seems to complain about restaurant prices. Why is that?! I wonder.

Profit margins on retail items are often very low when you consider the cost of production, overseas shipping, rent, staff, warehousing… the expenses are limitless. We’d need to sell in VERY large quantities in order to lower our prices.

I have a family member who owns a certain frum business and purposely lowered prices so that everyone can afford it. Guess what?! It doesn’t make any money. And she wonders why.

I want to reiterate what I posted on the other thread. It’s not just Jewish stores that are more expensive. It’s all small businesses.

I needed prenatal vitamins and walked into a local non Jewish vitamin store. I saw a specific bottle for $39 and was about to purchase it when I thought “oh wait. Let me check Amazon and see if they have the same for cheaper.”

Lo and behold, Amazon sold the identical one for $27.

Jews are not the only ones who do this. If you go into ANY small business store, you will see that prices are higher. It’s the only way to make a profit.

If you don’t believe me, and you think we’re all raking it in, I urge you to open your own business and see for yourself. Shouldn’t be too difficult if you’ll walk away as rich as you think we all are…

amother

Jade ↓

Sun, Jun 16 2024, 2:18 pm

amother OP wrote:

Thank you thank you!!!!
We do not have the buying power nor consumer size as Walmart or target or H&M or Zara. No one is trying to rip you off. We are just trying to make a living!

amother

Mint

Sun, Jun 16 2024, 2:21 pm

It's actually not so true. At least not every time. The restaurant Seared in Lakewood originally almost lost everything after opening up due to the fact that they were Beyond expensive.

Somehow they managed to lower their prices and recently rebranded as a more affordable restaurant and they seem to be doing better.

I'm not saying this always happens but it definitely is not completely unheard of that places are overpriced.

amother

↑ Jade

Sun, Jun 16 2024, 2:22 pm

amother Mint wrote:

That’s correct. In that case they were branding themselves as a luxury experience and overestimated the buying power of Lakewood.
But I don’t think we’re discussing obvious luxury brands

amother

Skyblue

Sun, Jun 16 2024, 2:27 pm

OMG I don't even own a store... but we have 2 frum food stores. One is in their backyard in a huge shed like thing and one is in a storefront. The backyard one is run mainly by the family who owns it.

Does it surprise me one bit that the store with the storefront charges more? NO it doesn't. Do I expect their prices to be competitive to Osher Ad or even Rami Levi NO not at all.

I do mostly shop at the cheaper store mainly because it happens to be closer to me. However, I would never expect the store in the storefront to lower their prices... They probably wish they could, but they obviously can't.

amother

↑ OP ↓

Sun, Jun 16 2024, 2:31 pm

amother Mint wrote:

Good for them that they learned quickly that extremely high prices aren’t either good for business.

But I’m not talking about this. I’m talking about the average small business.

I come from a family of many business owners. Most do ok, but not that well, even though they have a constant stream of customers. Their prices aren’t low, and not very high either.

A successful person in the same industry as a certain family member approached said family member and said if you wanna make money you need to double your prices. It’s not some sort of scam or joke. It’s the price of business.

DH runs a business where his fee is high, he has a nice amount of clients, and guess what, he doesn’t walk away with much. He has so many expenses in the business. If he charged more, he’d have fewer clients. If he’d charge less, he wouldn’t make money.

So what are we to do?

amother

Electricblue ↓

Sun, Jun 16 2024, 3:28 pm

I'm the op of the other thread
If you can't compete don't sell the same items. It's not fair to consumers to constantly be made to feel guilty that they aren't patronizing Jewish businesses.
There's no reason a small mom and pop shop needs to sell Hanes underwear. They want to sell the more exclusive brands, fine. But not the same cheap stuff we can get anywhere.
And I don't fully buy into the buying power. I just bought a tricycle for my child in a mom and pop shop. It's the same price as target and Amazon. As are most of the things being sold in that store. Yes, I checked.
Same for groceries. You have more elite grocery stores like breadberry, pomegranate, gourmet glatt that are higher priced than npgs and moishas. It's not about buying power. It's about elitism.

amother

Violet

Sun, Jun 16 2024, 3:34 pm

Jewish businesses are boutiques. Small family owned businesses are not usually frequented by the average struggling American.
The catch here is that for certain items we can't buy in zara or Walmart and that's where all this back and forth comes in.
We're supposed to support frum businesses but frum businesses are not necessarily affordable but then sometimes you have no choice and that's when these conversations begin.

amother

Broom ↓

Sun, Jun 16 2024, 3:35 pm

Customers also aren't trying to deplete your finances by not shopping at your store. They have their own budget considerations, and if your prices and return policy can't match the other stores, that's not the customer's fault.

The restaurant comparison doesn't make sense because the main reason people don't complain about restaurant prices is because the more price conscious customers don't even go to restaurants.

amother

↑ Ultramarine

Sun, Jun 16 2024, 3:35 pm

amother Electricblue wrote:

You know some people are willing to pay for convenience. So if they need new underwear today they will buy it and not wait for the next day.

You don’t like it- no one said you should buy it. Please don’t feel any guilt.

Cheiny ↓

Sun, Jun 16 2024, 3:37 pm

amother OP wrote:

I don’t think you can generalize and speak for all businesses. Yes, some (I hope, most) businesses only raise prices in accordance with having to make a profit, but many clearly do take advantage and charge whatever they want because they know many people will pay it.

Last edited by Cheiny on Sun, Jun 16 2024, 3:46 pm; edited 1 time in total

amother

↑ Broom ↓

Sun, Jun 16 2024, 3:41 pm

Cheiny wrote:

I don’t think you can generalize and speak for all businesses. Yes, some (I hope, most) businesses only raise prices in accordance with having to make a profi, but many clearly do take advantage and charge whatever they want because they know many people will pay it.

If people are actually willing to pay it, they have every right to charge that amount of money. That's how our economy is supposed to work, that stores charge as much as customers are willing to pay, and competition drives their prices down because customers aren't willing to pay more for something they can get for less.

The issue is when the customers are not willing to pay the prices, but they're pressured or guilted into not making normal purchasing decisions.

amother

↑ Electricblue ↓

Sun, Jun 16 2024, 3:44 pm

amother Ultramarine wrote:

The problem is that many Jewish consumers are made to feel guilty by not buying at the local mom and pop Jewish owned store.
The same person willing to spend more for convenience is also probably willing to spend more on a different brand.

HonesttoGod

Sun, Jun 16 2024, 3:45 pm

There’s a difference between having a boutique store with actual well made designer like stuff and charging for it (which 50% of Jewish stores are and that’s a whole other topic on the high standards in the community) and then there are boutique-like stores which sell stuff straight of ali express, shein, or temu with a 500% addition to the price. And that’s the issue people have because there are many frum stores that do that. And there’s no return policy. So we buy a lemon skirt for $75 that we shouldn’t have paid $10 for.

amother

↑ OP ↓

Sun, Jun 16 2024, 3:49 pm

If a store charges a lot and is raking it in, I’m very happy for them. Let them enjoy their success! They by no means are forcing anyone to shop by them.

If you don’t like the high prices, please go to cheaper stores. That’s your duty.

But if you like Jewish style clothes, or specifically want to support Jewish businesses, go ahead!

It’s a free world. Do what you want and don’t feel guilty.

I’m just trying to point out one thing. Very often, high prices are simply necessary. That’s all. Always? No. But many times, yes.