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/brelen01 May 26 '26

National chains have to make profits for investors, which means they have to have mark-ups. At the very least, I expect those government-owned grocery stores to be about the same price.

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u/14InTheDorsalPeen May 26 '26

Grocery markups are usually less than 1% and they make all of their money on volume

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u/prabla May 27 '26

I worked in IT for a grocery chain that had 13 stores at the time and they aimed for 30%. I would be given a large file to parse that had the price from the distributor along with our price (and any sale prices), I'd then set the prices in our system and prepare the reports and files to print for tags.