Where Your Money Goes When You Buy Electronics

Where Your Money Goes When You Buy Electronics

If you have ever been curious about where your money goes, you’re not alone. Many people wonder how they are affecting the economy, what people or businesses they are directly supporting, and what happens with the money they just spent on a product. I, like many others, was curious and wanted to figure out where my money was going.

If you walk into your local Walmart, then go to Best Buy, and finally check out Amazon.com, you will notice that the price of an iPod touch is almost the same at each retailer. Retail stores purchase merchandise directly from the manufacturer, then resell it in their store for a higher price. In the case of the iPod touch, Walmart will buy like 50 iPods directly from Apple, then sell them in their store for consumers to buy. So when Walmart purchases the iPods, they are directly supporting Apple. When you march into Walmart and purchase one of those iPods, your money goes directly to Walmart. They can use your money to purchase more iPods from Apple, upgrade their store, buy other merchandise, or pay their workers. By purchasing something from Walmart or Best Buy, or even at an online store, you are directly supporting the business that you bought the product from. In turn, they could always turn around and purchase more iPods, which means you would be indirectly supporting Apple.

Inside Best BuyThe other way Apple (and many other manufacturers) sells their products is in their own retail stores. In the official Apple stores, they do not purchase the merchandise, they are simply shipped supply to sell. When you purchase a product from an official Apple Retail Store or on their official website, your money goes directly to Apple itself and you do not support any other store such as Amazon, Walmart, or Best Buy. Apple will then use that money to pay their bills for their store, make more products, pay their employees, or buy anything the company may need.