00:00 00:00

Video

Follow our channel

Do Rollups Make the End-User the Loser? (Part 2 of 4)

What is “economy of scale” and what role does it play in a company that is consolidating using the rollup strategy?

In video 1 we defined what a rollup is and we mentioned the typical motivation behind a rollup which is to achieve an economy of scale.

Economy of scale can be defined this way:

“A proportionate saving in costs gained by an increased level of production.”

When a company buys up smaller privately-owned parts stores, repair shops, or mobile repair businesses they are often able to streamline operations and make them more efficient.

They increase their buying power because instead of buying for one location they are buying for hundreds of locations.

In the next video of this series, we will answer this question: Who benefits from all of this, and what impact does this have on the industry?


Subscribe to Our Weekly Email

Each week we send out one email with links to all the content we produce, and you will get access to exclusive giveaways and other resources. Subscribe Today!

Disclaimer: This content and description may contain affiliate links, which means that if you click on one of the product links, The Heavy-Duty Parts Report may receive a small commission.

Share this:
Twitter
Facebook
LinkedIn
Email
Related:

FOLLOW THE PODCAST

Receive a weekly email with links to the latest episodes.

Your Ultimate Destination for Heavy-Duty Parts.

Suspension | Steering | 5th Wheel

Search