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 fruit stands also buy the ripest fruit, which they can get for lower prices. It tastes good, but ripe also means it’s going bad in a few days. Grocery stores need a certain amount of shelf life, but a small cart can pick up a box of strawberries and sell most of it that same day. If they don’t buy it it’s going to spoil, so they get a good deal.