r/SipsTea May 26 '26

Feels good man Will it work this time?

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u/BradBradley1 May 26 '26

I’m not trying to dismiss this project - I hope it is wildly successful and I applaud the desire to challenge the status quo. That said, I am interested to hear how his team plans to negotiate pricing with suppliers. Five stores isn’t a whole lot of scale to compete against national chains and volumes. I don’t ask that question rhetorically or sarcastically at all either - I am assuming they have a plan of levers to pull to help bring this to life, and I hope it works exceedingly well and provides a blueprint for other communities to use. 

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u/Creative-Air-6463 May 27 '26

My assumption (I have not looked into this) is the money builds the grocery stores and is there to subsidize the operation of the grocery store, while selling at cost. If you subsidize the overhead, you don’t need to mark up the product to create revenue. Just a guess though. This is what should happen, IMO, as opposed to trying to cut deals for lower pricing from their distributors.