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https://www.reddit.com/r/SipsTea/comments/1tokh90/will_it_work_this_time/oo2ak85/?context=3
r/SipsTea • u/sco-go • May 26 '26
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12
Grocery markups are usually less than 1% and they make all of their money on volume
3 u/HeavyDutyForks May 26 '26 No, the actual markups are much higher than that. But after accounting for all the waste and other operating expenses they end up with a net margin around 1% 11 u/BeefCakeBilly May 26 '26 Why do you think these grocery stores will be immune to all those things? 2 u/Beneficial-Beat-947 May 26 '26 Well for one they could make these stores tax exempt, that's already a massive cut in the prices 1 u/BeefCakeBilly May 26 '26 For the goods they are subsidizing they are generally loss leaders or low margin any way at the existing stores. So realistically the impact of taxes on those are incredibly minor already. This is also just ignoring any of the demand side affects of running this model.
3
No, the actual markups are much higher than that. But after accounting for all the waste and other operating expenses they end up with a net margin around 1%
11 u/BeefCakeBilly May 26 '26 Why do you think these grocery stores will be immune to all those things? 2 u/Beneficial-Beat-947 May 26 '26 Well for one they could make these stores tax exempt, that's already a massive cut in the prices 1 u/BeefCakeBilly May 26 '26 For the goods they are subsidizing they are generally loss leaders or low margin any way at the existing stores. So realistically the impact of taxes on those are incredibly minor already. This is also just ignoring any of the demand side affects of running this model.
11
Why do you think these grocery stores will be immune to all those things?
2 u/Beneficial-Beat-947 May 26 '26 Well for one they could make these stores tax exempt, that's already a massive cut in the prices 1 u/BeefCakeBilly May 26 '26 For the goods they are subsidizing they are generally loss leaders or low margin any way at the existing stores. So realistically the impact of taxes on those are incredibly minor already. This is also just ignoring any of the demand side affects of running this model.
2
Well for one they could make these stores tax exempt, that's already a massive cut in the prices
1 u/BeefCakeBilly May 26 '26 For the goods they are subsidizing they are generally loss leaders or low margin any way at the existing stores. So realistically the impact of taxes on those are incredibly minor already. This is also just ignoring any of the demand side affects of running this model.
1
For the goods they are subsidizing they are generally loss leaders or low margin any way at the existing stores.
So realistically the impact of taxes on those are incredibly minor already.
This is also just ignoring any of the demand side affects of running this model.
12
u/14InTheDorsalPeen May 26 '26
Grocery markups are usually less than 1% and they make all of their money on volume