What is the profit margin in a supermarket?

Question

Communist Zohran Mamdami proposed city run grocery stores in New York City. The ides is that the city could run their grocery stores more efficiently and can sell goods cheaper than the supermarkets. When did the government ever run anything more effectively?

loveslongnails · Accepted Answer

" When did the government ever run anything more effectively?"

* I woke up this morning after getting a great night's sleep on my mattress that had to pass several "Cigarette Ignition Tests" and "Toxic Chemical Control Tests" as effectively required by the government.

* The sheets I slept on had to be clearly labeled with fabric content and chemical treatments. The electric blanket had to be equipped with an automatic shut-off time as well as passing several safety standard tests, as effectively required by the government.

* My working expresso was made with coffee that could not be treated with certain carcinogens, and made in a safe, inspected, test passing UL compliant machine, as effectively required by the government.

* I took the elevator, made from parts that had to pass regulatory standards, and deemed operationally safe on a regular basis by a local inspector, paid for with my tax dollars, as effectively required by the government.

You see exit, you're not even out of the building yet and your government has effectively made you WAY safer than if you just let corporations do whatever the fuck they wanted to, unchecked, because you idiotically believe they have the consumer's best interests at heart.

Certain counties around the USA have utilities that are government run and do quite well for less cost than privately run utilities. You could look that up if you've learned how to Google competently yet.

By the way, the "correct" answer is not a flat 3%. The correct answer is anywhere from 1% to 3% triple net generally speaking.

Also, the governments of countries who actually GIVE A FUCK about their residents effectively run Health Care in a way unforeseen by the "for profit billionaire model" found in the USA. In particular, countries like New Zealand, France, Taiwan, S. Korea, Norway, Germany, Australia, provide great care for citizens as PART of their tax base. And no, their citizens don't mind paying more in taxes because they receive SERVICES for them, like health care, education, transportation and safe food sources.

Do you ever "think" before you post bullshit GOP echo box points, like "When did the government ever run anything more effectively?"

Avicenna · Accepted Answer

Profit margins for most grocers are 1-2%. It’s a tough business. And what apparatchiks will the City of New York hire to manage these city-owned stores?

mfused411 · Accepted Answer

2.2%

He's going to save money by letting the stores go rent free. But since nothing is free, this means the taxpayers will have to pay the rent even if they don't shop there. Now throw in his proposed $30 an hour minimum wage and I don't know what could go wrong.

Kelley1 · Accepted Answer

The price difference between buying and selling is probably 20% or more, but after the cost of labor the cost of the building, utilities, maintenance, spoilage, taxes, and shoplifting, the net profit is about 3% to 5%.

OlderAndWiser · Answer

The last time the government did something more efficiently than the private sector was the 12th of Never.

Chazmatazz269 · Answer

It’s a control scheme. When the government controls who gets food, they can control the population better. You’ll have to show that you’re a registered democrat to get your food. If they feed republicans or independents at all, it will be at a significant cost. They will almost certainly shut down Christian food banks and charity kitchens too. They can’t allow free and low cost alternatives to government control, especially when their philosophies are diametrically opposed to the fascist state.
This has all been done before. Which is exactly why they already destroyed the public education system. Most people coming out of those skools have little to no knowledge of history and/or believe that what they were taught was entirely propaganda.
To some extent they’re right, but they’re still too dumb to differentiate good information from bad. Ell oh ell!

AviatorTom · Answer

I have relatives who manage supermarket stores, Their profit margin is surprisingly low, between 3% and 5%. Basic problem they have to deal with is a huge inventory of product, much of which is perishable and cannot be sold after a certain date.

FreyaRed · Answer

Depends. Groceries alone have low profit margin around 3-5%, BUT lot of groceries are huge food producer who sell their own products. This generates much higher margin. Get rid of middlemen more money remains for you.

onedarkcloud · Answer

Most supermarkets work on between 1 and 2%profit. I am old enough to remember stories of the GUM STORES in Russia having a 3 to 4 hours wait in line for a few items, and more empty shelves than full. Since when has anything worked right with the government having its fingers operating it? Just who in the hell is going to pay for the free, free, free stuff this Communist Mayoral idiot is promising? Please name one Communist country where this has worked since this bullshit idea of Communism started in 1917.. I hope all the people enjoy waiting 4 or 5 months for a doctor's appointment, and the same for a hospital bed. Where is the tax money going to come from when most large companies are now making plans made now in case the commie wins to move everything out of N. Y., and small businesses close, and a social worker answers 911 calls instead of police, I want to see how that works. STUPIDITY REIGNS SUPREME IN NEW YORK!!!

lightbulb27 · Answer

nothing the govt does is more efficient, he's nuts if he said that. prove it buy running a store. nyc has cheap grocery stores as it is... what is he inhaling, hashish?

1-3% I hear. not sure I buy that since we have so many grocery stores going in now and some are high margin expensive palces, w "higher quality."

somebody is making some mullah!

Curmudgeon · Answer

He obviously has NO idea just how low the profit margins are on most retail sellers, especially high volume mass merchandisers. Sure, there are "boutique" items that have higher profit margins, but those do not sell in any kind of volume.

NYC, which had a Renissance under Rudy Giuliani, is going on a downward spiral again. :(

Wiredone · Answer

The government doesn't do anything effectively or efficiently. They have their head so far up their ass that they can't even see daylight.

NaultD · Answer

You are going to have a small margin after top salarys being 300 to 500 to 1 ratio with median yearly salary of the total company. Majority of time in private jets spending at most an hour in the store.

jshm2 · Answer

LOL, that's not communist, dumbass.

Also, wasn't the whole premise of DOGE to run things more "efficiently" of which they've done fuck all?

The premise of a city run grocery store is basically a self funding foodbank.

slatyb · Answer

What do you mean by "profit margin" ? Do you mean the difference between retail and wholesale prices? Do you mean the return on investment? The difference between the revenue from goods sold and all the costs of running the store?

ProbablyClueless · Answer

Most of the time you’re talking 3% at most in the stores.

zagor · Answer

Apparently only idiots bother running for public office anymore.

BonzoInBitburg · Answer

It's very low. At best 5-10% for some stores. Anything on sale is typically a loss leader.

noohair · Answer

The government fucks things up and then fucks them up again trying to fix it.

msc545 · Answer

Your inability to distinguish communism and socialism suggests that everything else you have to say is of no value.

Anonymous · Answer

I guess that depends on a supermarket and their location.

DrPepper12 · Answer

This is a stupid idea borne of good intentions

Jeff51 · Answer

I hear they make pennies on stuff

Dongie · Answer

5% .

Lliam · Answer

1% to 3%.

RavVid · Answer

Quite funny.

beefcakebradybatson · Answer

Tiny.

What is the profit margin in a supermarket?

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