In case you’ve been living under a rock, Amazon (the online store that sells… everything… wait, how can you NOT know who Amazon is?) recently bought the Whole Paycheck–I mean Whole Foods grocery store chain.
Jeff Bezos (dood who owns Amazon) didn’t waste any time lowering prices.
Of course not everything in the store is “Walmart cheap” but some items are.
My guess?
Prices will continue to drop as Bezos keeps scheming to figure out how to recoup his investment.
Hopefully he’s smart enough to keep Whole Foods on its “Economic Value Added” business model, since he already does something similar with Amazon.
See, whenever Whole Foods opened a new store, they didn’t just throw a wad o fungolas at it. The new location had to borrow money from corporate and repay them with interest to prove they were profitable.
Now where have I heard that concept before?
If Amazon cuts prices, and appeals to a wider customer base, it can increase its revenue volume and make those corporate loans easier to pay off and thus grow the mothership into an even bigger monopolistic “threat”.
Will it happen?
I’d like to think so but we’ll have to wait and see.
If they end up taking over the world, it will be because they employed the heavyweight champion of all financial strategies… scaling it up to superhuman levels.
I’m talking about “the borrowing strategy”… the idea of borrowing money you own or control and then repaying that savings (in corporate lingo, it’s called “capital”) with interest.
If you’d like to go forth and do likewise, let me show you how…
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