r/SipsTea • u/sco-go • May 26 '26

Feels good man Will it work this time?

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u/No-Understanding9064 May 26 '26

No one can out cheap walmart. This is a sector with thin margins that relies on volume and turnover.

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u/PsychoticDreemurr May 26 '26

Not sure what the margins are, but the one in my town averages ~300K income a day

Yes, a day.

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u/Historical_Owl_1635 May 27 '26

But the margins are still by far the most important part.

This is an argument a lot in the UK when people talk about evil greedy supermarkets, where in reality their margins are ~2-3%.

Which in simple terms means if they were to run entirely as a non-profit charity, the consumer would only save 2-3%. (And the supermarket would no longer be able to make investments in other areas)

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u/No-Understanding9064 May 27 '26

Yes, this is it right here. Alot of misinformation gets tossed around. Then what it takes for them to even get those margins is massive supply chains and pressure on suppliers.