Grocery price discrepancies

[yelped]

pretty sure their model is accepting products close to expiration for a highly discounted price….

As opposed to groceries in Lakewood selling already expired items for a highly inflated price?

In any case, I used to shop in Rosner's all the time. Besides for fruits and vegetables, I had no issue with their merchandise.

[yesitsme]

As opposed to groceries in Lakewood selling already expired items for a highly inflated price?

In any case, I used to shop in Rosner's all the time. Besides for fruits and vegetables, I had no issue with their merchandise.

What about their chocolates?

[Lurker]

Credit cards cost no more than 3%.. not enough to justify..

Exactly. Anyone turning down business for less than 3% in order to run an all cash business.... I wouldn't compare their pricing to other stores.

[WonderingYid]

Credit cards cost no more than 3%.. not enough to justify..
I like this chart.. maybe we can use this tool to bring down prices..
When store owners realize that their being exposed.. they'll stop taking advantage

Plus taxes, and CC disputes.

[yesitsme]

Exactly. Anyone turning down business for less than 3% in order to run an all cash business.... I wouldn't compare their pricing to other stores.

They pay their vendors in cash too so they have leverage

[Lurker]

They pay their vendors in cash too so they have leverage

Cash is a completely different animal. IMO, it's disingenuous to use that business a baseline for comparison.

[S209]

Cash is a completely different animal. IMO, it's disingenuous to use that business a baseline for comparison.

It’s true that it’s different, but it’s a a good way to measure the pricing that other stores should be aspiring to.

[Lurker]

It’s true that it’s different, but it’s a a good way to measure the pricing that other stores should be aspiring to.

Absolutely not.

Cash is a completely different animal.

[Euclid]

It’s true that it’s different, but it’s a a good way to measure the pricing that other stores should be aspiring to.

*movie trailer guy voice*
"In a world with no taxes..."

[jye]

The real benchmark should be wholesale prices but I guess the poster doesn’t have access to those so Rosners is simply an arbitrary starting point to measure all of the other regular groceries. He’s not putting Rosners into the spreadsheet which would be apples to oranges but simply using it as a baseline to compare the other stores markup. Pretty valuable information. Looks like bingo is the clear winner so far.

[Lurker]

The real benchmark should be wholesale prices but I guess the poster doesn’t have access to those so Rosners is simply an arbitrary starting point to measure all of the other regular groceries. He’s not putting Rosners into the spreadsheet which would be apples to oranges but simply using it as a baseline to compare the other stores markup. Pretty valuable information. Looks like bingo is the clear winner so far.

Wholesale prices are also not equal. Depending on the volume and relationship with different manufacturers and distributors, as well as other variables such as quality and remaining shelf life, every store will have different starting points at which their margins are based on. Additionally, location will change overhead, making comparisons a bit hard to make.

Bingo is a great example, as they don't deal with any distributors, only manufacturers. They also use multiple types of leverage to get prices even the biggest distributors cannot get. I wouldn't set them as a benchmark, either, against local grocery stores.

[Euclid]

Bingo is a great example, as they don't deal with any distributors, only manufacturers. They also use multiple types of leverage to get prices even the biggest distributors cannot get.

Oooohh this is interesting. I wonder what this means

[Lurker]

Oooohh this is interesting. I wonder what this means

Nothing crazy. It's essentially Osher Ad with a different name and a few US partners. They have the ability to manufacture their own products, similar to Kirkland or Member's Mark, and use that to convince name brand manufacturers to give better pricing to avoid an additional competitor for those products. Between that, their volume, and some exclusivity deals, they can get better pricing than anyone else.

[jye]

Wholesale prices are also not equal. Depending on the volume and relationship with different manufacturers and distributors, as well as other variables such as quality and remaining shelf life, every store will have different starting points at which their margins are based on. Additionally, location will change overhead, making comparisons a bit hard to make.

Bingo is a great example, as they don't deal with any distributors, only manufacturers. They also use multiple types of leverage to get prices even the biggest distributors cannot get. I wouldn't set them as a benchmark, either, against local grocery stores.

From the consumers side the only thing that makes a difference is the bottom line prices and the spreadsheet is very helpful in that regard. There might be a secondary effect when it comes to the distributed-store relationship but those dynamics are more complicated as you pointed out.

[Lurker]

From the consumers side the only thing that makes a difference is the bottom line prices and the spreadsheet is very helpful in that regard. There might be a secondary effect when it comes to the distributed-store relationship but those dynamics are more complicated as you pointed out.

If people are using the spreadsheet to find the lowest prices, you're right. But if they're looking to understand why their preffered store is priced a certain way, while other stores are priced lower/higher, then the spreadsheet isn't very helpful. As was pointed out upthread, the quality of produce isn't anywhere close to comparable between a few of the stores listed. Other factors, such as location (Boro Park vs Five Towns), target demographic (upscale vs budget), and business size (local grocer vs superstore) will influence a pepper costing $2 at one store and $4 at another.

[Yehuda57]

target demographic (upscale vs budget)

Crown Heights, for example, has Kol Tov, The Market Place, and Empire Kosher, all owned by the same person, selling much of the same stuff. The exact same item can cost $2 more in TMP than EK. Buyers mostly know this. But TMP offers a slightly better experience, and people are willing to pay for it.

[WonderingYid]

The exact same item can cost $2 more in TMP than EK. Buyers mostly know this. But TMP offers a slightly better experience, and people are willing to pay for it.

And then complain about prices...

[S209]

If people are using the spreadsheet to find the lowest prices, you're right.

I assume this is the intended purpose of the spreadsheet.

[AsherO]

And then complain about prices...

#cognitivedissonance

[Fish Tank]

I guess if kosher consumers are not price conscious why should the distributors and stores be?

are they trying to compete on anything? Or just using the fact that we have to shop their since kosher...

Good question. I don't have all the answers, but it appears that they have to compete with each other, but not with walmart and Target.

A) We need kosher foods/brands which aren't carried at the big chain stores
B) Local grocery stores are much convenient for delivery and for in store shopping (closer, very late hours, etc)
C) If you're using WIC, prices on milk, eggs, and bread don't matter. 
D) Some local stores sell on credit. WM/target/Aldi don't offer that
E) Can buy everythingin one store. Meat, Fish, bakery, Deli dept, etc. etc.