What do you think about this?

Question

My boyfriend, years ago worked at two different shops in the same chain of shops. One was in a poor area, and then he filled in and eventually got transferred to the one in a rich area...same city. The difference was, in the shop on the rich side of town they would give all of their customers discount cards for cheaper rates on services that they could use each time they came in. On the poor side of town, there was no such card and everyone was charged regular price. It seems like it should be the other way around, or at least the same across the board, don't you? Why is the world like that, even in little ways like this?

I guess, I should have been more specific, by rich--i mean very rich--mansions, lakeside homes.

By poor, I meant poor-mid. class...more of the working stiffs, not the ghetto by any means.

Answer 1

Okay here is how it works. The poorer side probably didn't have many places to choice from to do their business. Where the rich side had the money to choose to go anywhere. If one wants to keep a customer coming in he/she is going to give them discounts etc in order to keep the business coming. Another thing is on the rich side there is more networking. So if Joe says going to eat at xxx last tonight or I went to xxx last night the food was fantastic. Word or mouth and the power of suggestion also influences.
It's economics!!
Just like Movie stars who make millions are often given free clothing, jewlery etc. This way they were it for nothing people see it and go out and purchase the product. People who are making less money then the movie stars.
Just Ecomonics.

Answer 2

Yeah, but there are two other things going. Middle class are generally more money conscious than the poor. Study shows that the middle class spend more time worrying about money than the poor or the rich. I read in the paper the reasonis that many of the poor spend their money as soon as they get it, because if they don't they feel someone else might take it.
THe other reason is that their are a greater risk to opening a business in poor neighborhoods. I heard this during the Rodney King Riot in Los Angeles. A lot of supermarket won't open in bad neighborhoods because of fear of theft and violence. THose markets that are willing to open there also charge more for accepting this greater risk.

Answer 3

I am not sure what you mean by "rich side of town", if you are talking about an extremely affluent area or a middle class neighborhood.

As one other person said, the middle class tends to be more cost conscious than both the upper and lower financial classes. They are more apt to use coupons, shop according to value, and prioritize the spending to the stores that offer them more for their money.
Additionally, middle and upper financial neighborhoods tend to offer more options for shopping which forces stores to compete for business more aggressively. If a discount card is offered at 5 stores then the 6th store better offer one as well or they are going to lose business.
Plus opening a business in a lower socioeconomic area has higher inherent risks due crime rates tending to be higher and volume of sales being lower which may mean that the profit margin is lower making discounts less easily absorbed into operating costs.
I had a friend who worked at a chain store in two locations in the the same city, one in a lower socioeconomic area and one in an upper/middle socioeconomic area - she said the volume of coupons used in the upper/middle class store was triple what was taken in at the other store. This fits the spending patterns for many middle class areas - as much value for the dollar as possible.
Why the trends are the way they are - who knows, but a business owner has to make a profit or being in business is futile.

Answer 4

I agree with you 100% the richer they are the greedier they are as well. The poor are the ones that need the discount card in the first place the rich don't need it and they get most back in tax anyway one way or an other.They do look down down their noses and just don't care.

Answer 5

That's how it's always been; the rich get tax breaks and the poor get extra taxes that they can't pay for. It's disgusting, but I doubt it'll change any time soon (if ever).

Answer 6

Because the rich look down on the poor and they think that they are superior to them. (in money wise they are) but I don't think you can look down on someone just because of their financial status, it doesnt change who people are but it does to rich people.