Why
so negative?
29 September 2004 - Los Angeles Times
Why
is Steve Lopez so
negative about change? Was he this negative when gas stations
stopped filling his tank for him and went self-serve? Was he this
negative when pumps started having credit card readers so he no
longer had to go inside? Differentiation is the hallmark of a free
market, and while some stores like Walmart have chosen to offer
supremely low prices, others like the Albertson’s he visited have
chosen to "slay the beast with better service." Obviously, it’ll
take a while for the stores to get just the right mix of personnel
serving hot cross buns and manning the checkout lanes, but they’re
getting there, and there are always (thanks to free-market competition)
alternatives - Trader Joe’s has some of the best service I’ve encountered.
Lopez
and the union member he spoke with think it’s all about padding
profits, but this betrays a lack of knowledge about how competition
works. The losses the major grocery chains took during the recent
strike should have shown everyone how thin operating margins are
for these chains. Knowing as they do that they’re losing customers
daily to competitors with lower prices, does anyone really think
that the cost savings from using automated checkers will go right
to the companies’ bottom lines? More likely, those savings will
be passed on to the customers in the form of lower prices, so they
can remain more competitive with Walmart and the bulk discounters.
|