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?
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The small corner stand has significantly less overhead than any of the big stores. So while the large chains are able to negotiate and buy very well, they still need to make a minimum amount to cover their large bills, not to mention they have to account for the fact that much of their merchandise might go unsold.
A small guy might only buy a few crates amd can sell it for less because he doesn’t have the same overhead to cover, and if he can’t sell it all he takes it home to help feed his family.
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