Thursday, 11 July 2013
Capitalism is concerned with exclusivity
The nature of Capitalism is that people have choices and they can always shop elsewhere. This means that to make money you need to sell you produce at a cheaper price than all of the other agents in the market. This might at first view appear to be almost impossible given how many other people there are in the market but then we realise that for different reasons we have a niche. The main niche for most people in the market is location. People shop locally as a general rule. So you can sell things in your shop at a slightly higher price than the superstore in the next town purely due to your location. There may be other distinguishing characteristics which mean that raw price is not the only determinant to make a trade. But for a trade to take place there must be something special which you offer which cannot be provided by the rest of the market. There must be something unique about your product... whether it is the location... the ambiance... the price. It is because your product is exclusive in some sense that you will be able to make a trade.
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