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

I worked at Hunts Point Terminal putting orders for wholesalers. They sell to big box and smaller retailers alike. Only difference is big box stores mark up significantly to account for operation costs.

You also have route sellers. Guys drive upstate direct to small farms and have bodega routes they cover; any overage is sold to street stands or end buyers. Id buy a box of plantains or oranges of 100 for 10 bucks- but its not ideal for non retail since things spoil quick.