Posted: Nov 29, 2018 7:11 am
by Keep It Real
Thommo wrote:
Why pay staff and rent costs to sell someone else's product that directly competes with your own? You posted this in the economics forum and there's a standard, obvious economic answer - you will only do it if it maximises your own profits. In the case of selling someone else's directly competing product it won't. Selling your own gambles sees all the revenue come to you. Selling someone else's is virtually worthless. That makes the net opportunity cost too great.

Supermarkets/newsagents do not sell their own scratchcards - they make a profit from selling them. Also, scratchcards do not have anything like perfect substitutes (that's an economic term BTW) and so are not in direct competition with bookies' other products. You really think a horses man is going to switch to scratchcards just because they're being sold behind the counter at betfred?

Basically I'm wearing a tinfoil hat on this one RE the thread title. Either the scratchcard manufacturers/distributers, or the gov, refuse to allow the sale of scratchcards in bookies because they don't want their lovely, pretty, accessible cash cows (scratchcards) to be tainted with their true identity/home which is the aformentioned "auro of despair" venues/lifestyles.