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

The stands are cheap, but you would also find most of the time the produce is not very good, especially in the summer months where a box may be outdoors for a couple of days and you get insects, shrivelled veggies or rotten fruit quite often. Otherwise it’s a bargain if you can get your hands on fresh clean stuff