How much should a grocery store make on the food you buy?
Is 10% over costs acceptable?
Is 13% ok?
Discussion
why not buy directly from the producer?
I am my producer lol, i mean for 6 months or so. everyone here is all over the stores for price gouging as they are unable to grow their own.
The issue i see is everyone has their fiat targets priced in percents. Grower makes 1 pepper for $1, then sell to local distributor who needs to make 2x to cover costs then national distributor does same. If the price of the pepper goes up 50% for the consumer it represents a tripling in price.
80% fine
Used to be about 2-3% net profit after paying costs for storage, lights, cooling, staff, marketing.
To cover that certainly takes a bit more now then the past due to more spoillage, more theft, regulatory changes
40% seems reasonable. I've worked in retail selling tech. I worked at a manufacturing plant making engined products. The margins for both are 40% minimum. Food is a necessity. It should at least match.
What the market can willingly pay...
Unless there collusion i agree
There is always collusion... especially in commodities. Look into the maple syrup mafia of Quebec, it's a nice rabbit hole
Oh I am a Canuck, I know our history from Wheat Boards to Dairy Lobby
https://en.m.wikipedia.org/wiki/Great_Canadian_Maple_Syrup_Heist