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

Not all produce is the same quality and degree of ripeness.

Prime produce for a big store needs to be a little less ripe to survive handling and distribution, also look prime on their shelves for a longer time.

A little riper and there is more spoilage with shelf life so if it can be turned over quicker, there is a market as it sells for less due to it’s condition