How do produce stands in NYC, Montreal, and other major cities sell their items for less than most big box chains?

Question

In NYC, there are plenty of produce vendors on the street that sell aesthetic, fresh fruit for less than cost conscious mega-chains, like Wal Mart, Trader Joes, and Wegmans. The big chains have negotiating power, wholesale discounts, and economies of scale to help them profit on tiny margins. So, how is it that my small, local, fruit stand can outcompete pricewise with national chains and still stay afloat?

In: 2607

Answer 1

During the shipping of produce there are specific temperature requirements. If during shipping, the temperature falls below or above the acceptable levels, the quality grading of the produce declines. As a result, the big box stores may not take the produce. To liquidate, the produce is heavily discounted and are sold to individuals/street vendors. Most of the produce in Chinatown comes from this source