What is 711?
711 is a grocery store chain that has been helping people get a meal or drink with other grocery items. It offers food and beverages for people, mainly located at gas stations or near gas stations.
History
This was started in the year 1927 and the first store was opened in Dallas. The initial days were a little rough for the company as there were no such customers, but as the idea was liked by the people around, sales grew at a rapid rate. The company name 7-11 was given in the year 1947. Before that, the company used to be known as Tote’m Store.
Initially, the store was used to give only small drinks and local foods, and in 1931, at the time of the Great Depression, the company almost went bankrupt, but somehow it survived, and from there they started expanding the chain to different states and different countries. The concept was liked by many people, and today the company valuation is in the billions.
Currently, 60,000 7-Eleven outlets are operating all across the nation. But one of the questions that always arise in customers’ minds—and often it is the reason the sales are down—is Customers often complain about the prices they charge for their products being a little expensive.
Why is 7-11 so expensive?
The 7-11 outlets are not very expensive, but yes, some products are expensive as compared to their competitive stores, but what is the reason behind that?
Convenience
The first reason behind 7-11 outlets’ being so expensive is that they are more convenient. Many people visit 7-11 stores to just take small things or only 1 item, and thus to earn more profit and maintain their expenses, they charge around 10% more than the other stores. Some 7-11 stores also have ATMs, and people often just visit the store to purchase any item, so they need to charge more.
7-11 stores are convenient as most of the stores are open for the whole night and full day, and if customers buy small goods, it will be a loss for the business, so to maintain the cost, the price of some items is often high.
Marketing
The 7-11 team of management spends a lot of money on advertising, as their stores are in numerous countries and to be known to more people and increase their customer base, the company spends a large amount of their income on advertising their products through various platforms, and we are fully aware that today’s advertisements have become expensive for a small ad on TV, businesses need to pay a large amount.
Thus, to maintain the outflow of advertisements, store outlets increase the price of certain goods.
Machine Maintenance
Maintenance is also a factor responsible for the price hike because many stores have a large number of machines that are there for food items to keep them warm or cold like many countries have machines that offer a cup of noodles or items that need to be fresh and warm, and thus the maintenance cost of these machines is high, and to maintain the cost they need to increase the price of certain goods in their store.
Rental
A large amount of income from stores goes into rent as the company has stores in many parts of the world and, for more convenience, it has 60,000 different stores in different countries. The store is located at a rent and depending upon the place in which the store is located, some stores have very high rents. If accumulated together with the rent on these stores, the company will go into a loss. To maintain this, the company charges more on certain items to maintain their outflow.
Transportation
The company purchases many of the items from different warehouses and also some of their exclusive items are imported from different nations. In this transaction, the company needs to pay a large amount of money in taxes and import-export services and to maintain their profit, the prices are high.
Extended hours
The 7-11 stores are open throughout the day and night after increasing their work shifts from 7 a.m. to 11 p.m. Some stores at gas stations are open for 24 hours and 7 days, and a single person can’t work for that much time, so they have different people in their stores. The salaries of these people are also good, and to maintain that much workforce and give customers an optimum experience in their stores, they charge more.
Note
All the items in 7-11 stores are not hiked at higher prices for certain goods whose costs have been increased in the course of their transportation and availability. The rest of the normal goods are cheaper than in the local markets.
7-11 is a grocery store that is available in many countries and many cities. They offer food and beverages and different grocery items in their store. It was founded in the year 1927 and since then it has gone through many changes and many things have been added to these outlets. The prices of certain goods in 7-11 are often high as compared to the local market and their reasons are quite clear and transparent. They have to pay a large sum of their income in rent and transportation of items, then the machines also need maintenance, the shop is open 24*7 and to maintain the workforce, they need to increase the prices.
