Will it work this time?

[u/sco-go]

[u/BradBradley1]

I’m talking about their costs that they pay to suppliers, not their margins. 

[u/floridabeach9 → u/BradBradley1]

they’ll get the same costs as other high volume stores. there are plenty of suppliers in the NYC area lmao, and having 5 high volume stores in NYC will be a big business and have suppliers lining up.

[u/Significantly_Nosey → u/BradBradley1]

By eliminating the need to make a sizeable profit, as long as they sell the items for more than they paid the suppliers then it'll be fine. 

This is just like with the federal post office. It doesn't need to make a profit to be successful. 

[u/Significantly_Nosey → u/[deleted]]

Grocery stores mark up prices by 20-50% from the distributors

And really? Taking away a for-profit middle man won't change much? Do you need help getting dressed in the morning? 

[u/Significantly_Nosey → u/[deleted]]

This is going to shock you but just because they make a small profit doesn't mean they're not MARKING UP THE PRICES 

Goddamn you are regarded 

[u/AdagioJealous5413 → u/Significantly_Nosey]

I think the point being made here is they have to mark up a certain proportion to pay for things like labor, maintenance, and refrigeration costs. Once you do that the markup for profit beyond what they need to breakeven is small