Pater Familias

Theories, observations, and articles, by Philip Schaefer · All posts · Categories

WHY TWO CANDLE SHOPS?

November 1, 2008 at 10:21 AM · Economics

WHY TWO CANDLE SHOPS? I posted a couple days ago on Annalisa’s question about why two candle shops would be located next to each other in a Richmond mall. I have a couple suggestions. One suggestion is based on the observation that car dealerships are often located in bunches. If you think of potential buyers as making decisions in two stages–first, shopping for a car and second, choosing among alternatives–then locating your dealership near other dealers make sense. Customers who are drawn by the advertising of your competitors may look at your cars too. The same may hold true for candle shops. The other suggestion is that the two candle shops may be affiliated in some way.

Referenced in: A BETTER ANSWER TO A QUESTION OF ANNALISA’S.