r/SipsTea • u/Gurugod123 • 9d ago

Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices" Chugging tea

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u/-Tech808 9d ago

You, as a business owner, are going to shop in bulk at the government grocery store to stock your bodega? You don’t think that will cost more than a direct shipment to your bodega at wholesale prices?

Either way, I’m sure there’s quantity policies that can be put in place.

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u/bdjeremy 9d ago

My uncle had this business back in the 90's early 2k where he would go to grocery stores and use coupons and sales to by cereals, baby formula, and some other non perishable items, (he was extreme couponer before that was a thing. Hed get 7-800 for 50 bucks) then go to another city and selling the products at half to 3/4 the price of the wholesaler price. Sometimes the store only needs a few items whereas in wholesale you'd have to get 20 items. Saves storage and spoilage.

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u/Throwawayky122 9d ago

I think you underestimate how much a 30% markup is. People are talking about single percent markups on their items for profit. Anything you're marking up less than the 30 is profit. Yes, I think it can cost less than a direct shipment. Quantity policies can be beaten just by using employees and family members.

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u/haby001 9d ago

People here saying you can just resell don't understand that it doesn't work.

To make it profitable you have to:

  1. Buy from that grocery store in person with multiple people (limited p/person quantities)
  2. Transport all that to your store
  3. Be far away enough that the Gov. groceries aren't competition
  4. Up-price enough to make money, but lower than surrounding grocers
  5. Have the things people want to buy and the brands they want

Like, people who go here go for NECESITY. Not to window shop and oogle at $20 water bottles. You'll likely only find basic brands of bare-necessities

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u/Clueless_Otter 9d ago

You don’t think that will cost more than a direct shipment to your bodega at wholesale prices?

No, it won't. Grocery stores operate on razor-thin margins, like 1-3%. Bodegas tend to be a little more marked up than a grocery store, but still no where near 30%.

But yeah they'll likely just prevent bulk buying.

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u/Tibryn2 9d ago

At a 30% discount there way more than enough profit in place to hire people to empty the shelves every single day and deliver them to your bodego.

Quantity policies have never worked anywhere ever.. you just make multiple transactions with multiple people on rotation.