Higher volume offers return on effort - The Packer

Higher volume offers return on effort

08/10/2012 08:53:00 AM
Armand Lobato



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FdS    
Nogales  |  August, 13, 2012 at 10:23 AM

why would you sell tomatoes at $.90/# or more when purchased at $ .30/# delivered when you could profit from them at $.40/# and get more movement from them? The only retailers in the USA that understand this are the latino retailers and move loads per week, this attracts more consumers to get other items at premium prices. I'm referring to low and high end latino markets, whee a non-latino will never go shopping, but you have a greater consumer based also in the non latino population that would tremendously benefit from a retailer that would go to this end first before it also becomes a trend. Both retailers are getting the same quality tomato, from the same place at the same prices, difference is, the latino retailer is maximizing sales ad making a higher sales profit than the other.

Armand L    
Colorado  |  August, 13, 2012 at 07:08 PM

Excellent point. If you notice I stress higher volume to maximize sales, not raise prices. If anything higher prices usually push volume down and make a retailer less-competitive. The trick is to take advantage of all sales opportunities so the extra volume will drive overall sales up. That's the whole premise of grocery stores: to sell items (competively) in gross quantities - hence the 'groc' in grocers. Latino markets are indeed one example of aggressive pricing (meaning selling on as low a margin as possible) in order to maximize sales. "A fast nickel is better than a slow dime."

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