Ever wonder where your $$$$ goes when you spend it? And no, I don't mean you look at your wallet and go, "Where did it all go?!" I mean, actually where it goes once you pay for the product?
Think....Nike. Coca-cola. Estee Lauder. Whole Foods. Hermes. Walmart. Etc.
All of those places and companies make products. You buy from them. You pay them. You enjoy the product.
The money.....goes somewhere. But maybe not it's not going where you think it's going.
Ever wonder how Michael Jordan or Sarah Jessica Parker get paid for their Nike or Garnier ads respectively? The company just doesn't cut them a check and call it a day. Oh, no. YOU pay for them. In 1995, Nike shoes cost $20 to make, and $35 for the retailer to buy them (that's an instant $15 profit to Nike, just to have the stores show them.) You paid $70. That's a 50% markup to the store. 50%!
....I'll wait for that to sink in a little more soundly. YOU pay for that advertising. YOU PAY for the name.
Ever wonder what the real difference is between Hermes bags, Coach bags, and, say, Nine West bags? Prestige? Absolutely. Quality? Somewhat. NAME? 100000% yes. Yes, a little money is spent on actual quality, but the majority of what you're paying is strictly because of the name. Hermes has a 90% markup on their hand bags. Let that sink in for a minute. 90% of the product's cost is going back to the company / owner. That's after all the other middle men have been paid (wholesaler, overhead, employees, etc.) 90%!
Now, what if you bought from a family business? I bet the cost / markup is much less. They aren't a big conglomerate able to mass produce overseas at an extremely cheap price. They're people using local resources, often times, and therefore the cost of production is often higher. When you buy from them, you're buying either a higher quality product or supporting local resources.
Is either wrong? Nope. Just a bit of FYI as to where your $$$ are going.
Personally, I like nice thing AND supporting local businesses. :-)
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