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

Just to add, there are different grades of produce as well. Big chains usually want what’s considered a #1 grade. The small spots can usually take a lower grade like a #2, which can have lots of defects and even mold, and they can sort through and sell as is for less. A lot of times #2 is perfectly fine it just doesn’t meet the standards to be called #1 due to sizing or slight discolour.