>"If you're talking about what I first thought of, which is things like groceries, housewares, the "every day things" that we all buy and consume without really thinking, I'm not sure that A: The prices on these items could go much lower than they already are and remain profitable"
This is the wrong analysis. Price of goods is say, (Supplier Cost)+(Transit to Store)+(Profit Margin)=MSRP
You're saying that MSRP can't go down without hurting Profit Margin.
He's saying, Transit to Store will decrease, allowing MSRP to decrease without affecting Supplier Cost or Profit Margin. (Or Profit Margin can increase while MSRP remains the same)
This is the wrong analysis. Price of goods is say, (Supplier Cost)+(Transit to Store)+(Profit Margin)=MSRP
You're saying that MSRP can't go down without hurting Profit Margin.
He's saying, Transit to Store will decrease, allowing MSRP to decrease without affecting Supplier Cost or Profit Margin. (Or Profit Margin can increase while MSRP remains the same)