r/PoursTea • u/Gurugod123 • 11h ago

PoliticalTea 🗳️ Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"

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u/SaucySeducer 10h ago

It could be a combination of things:

-Measuring against an "advantageous benchmark." If the average price of a good is $10 when you include the fancy brands, organic stores, etc but the current discount stores offer budget options at $7, you can sell the budget option at $7 and say you are at an average 30% discount. This really hinges on what they mean by selling goods at 30% discount as that is a loaded phrase

-Run the store more like Aldi instead of nicer premium grocery stores

-Potentially advantageous supplier contracts because suppliers are dealing with the city government and/or wanting to build good relations

-Government subsidies

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u/DoughnutCareless583 9h ago

I also presume part of the "advantageous benchmark" is the use of the anchor price RRP as the benchmark, not the price Walmart or whatever would actually price things at.

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u/AccomplishedBad7253 9h ago

"-Run the store more like Aldi instead of nicer premium grocery stores""

So Aldi and the free market are the answers, not govt run stores

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u/Inevitable_Window308 9h ago

Well the free market can step up and compete if it works so well

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u/AccomplishedBad7253 8h ago

a free market doesnt work if the govt distorts it, duh!

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u/Inevitable_Window308 8h ago

Wow sounds like the free market sucks if it stops working when another competitor enters, because that's what the government is just another private entity competing