NY SBDC Research Network: 09/01/2019

You could look at the final number of establishments in the United States using just the U.S. Census Bureau’s County Business Patterns (CBP) data. But if you did, you’ll only be getting a partial view of the economic scenery. That’s because CBP only provides data on businesses which have employees on their payroll.

But, in 2016, only 23.8 percent of the 32,570,855 institutions in the United States had paid employees. That means the rest of the 76.2 percent of institutions were nonemployers or institutions that don’t have any paid employees. And the ones data come from the 2016 Nonemployer Statistics (NES). The majority of all business institutions in america are nonemployers, yet these nonemployer institutions average less than 4 percent of all sales and receipts nationally. So, to get a full picture of U.S. 2016, you have to check out both CBP and NES data programs. The U.S. Census Bureau just released a written report that combines both models of data for the first time.

1,372 experienced the counterfeit item not be produced available to the on-line shopper. You could claim that also, because the price for knock-offs is so reasonable, unit sales could/would/should significantly increase. This phenomenon is actually a bonanza for the consumer. Middle income shoppers look like able to afford Coach Bags, Rolex watches, Prada sunglasses by the e-cart full.

Moreover, extreme price competition will drive selling prices down slicing margins to the bone, forcing high cost companies out of the game. Consumers are better off, economic activity increases and GDP should develop. It’s all good. On the other hand, the trade-name, copyright and patent holders, and these high-cost producers unable to gain access to cheap labor, inventory and unlimited Chinese capital might all disagree.

So how big is the “Amazon/Walmart Effect”? Amazon is among the most repository for pricing information and the benchmark for what consumers believe they should be paying for a specific SKU. The “Econ’s” imagine perfect price breakthrough is finally at your fingertips. As of the end of 2015, Amazon got nearly 2 Billion items on the market on it’s global platform. 225 Billion) has dominated the Chinese e-commerce landscape from day one.

There’s apparently no room in China for a poorly run company like Amazon to get a foothold. For some reason, Amazon has had the opportunity to become the prominent player in e-commerce around the globe, yet it can’t sell anything in China. Now, for fun just, let’s have a high altitude go through the “authorized sellers” on Amazon.

Let’s type a few luxury brands into Amazon and find out what we get. First, let’s try Coach. One of the Amazon sellers even lists that the purse is made from Coach’s “Signature PVC”! 1,500 handbags are manufactured from the same materials that’s used to plumb my toilet, as opposed to say, top-grain leather. I assume that just demonstrates how much I know about developer handbags. All of the above brands, and many more presumably, have re-sellers listing goods with dubious descriptions. There is a veritable river of unusual Q&A and wording on the message boards. The theme is usually: Inquiry: “Is this a real Coach/Gucci/Prada?”.

  • These channel people can also assist in marketing the new product
  • 2 mugs coleslaw (rinsed and drained)
  • Non-business elective,3 credit hours
  • Body Piercing

As an apart, easily were a brandname manager at Coach/Gucci/Prada, I’d be more than a little pissed off. 478 Billion), both of these businesses contribute/control approximately 15% of all retail sales included in 2015 US GDP. Predicated on the GDP impact described above, though these companies have produced enormous growth even, we can notice/surmise that these business models are also a significant contributor to stalling US GDP growth.

The delivery of perfect pricing information is, by its nature, deflationary, generating prices down and trimming margins. This phenomenon has allowed consumers to increase their purchases in unit conditions significantly, while reducing total retail dollars spent. Again, this is a bonanza for the united states Consumer. 1,500 for a Coach handbag.

We can all instantly afford multiple buys of pseudo-luxury top quality goods, albeit of dubious origins. But we don’t caution. We spend a comparable altogether dollars, as consumers yet, we are much better off because we get more bang for our hard attained bucks. The impact on GDP is magnified because consumers, armed with perfect price information drive prices down over the economy.