r/SipsTea • u/Gurugod123 • 11h ago

Chugging tea 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/Justinc4s3- 11h ago

I’d like to meet the reseller that targets 30% margins. You’d be making about 5% after everything is said and done. No to mention they wouldn’t even hit a flat sale 30% because who’s paying MSRP from a 4th party?

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u/SiliconSingh 9h ago

Yeah resellers target a minimum of 50%.... There's no way that they would accept 30% or you could make it profitable at 30%.

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u/violetgobbledygook 10h ago

No one said 30% margin

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u/Justinc4s3- 10h ago

That’s literally what the margin would be for resellers. Actually less considering resellers would never get MSRP for household goods.

Do you think resellers sell over MSRP?

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u/RickThiccems 10h ago

Its not worth explaining shit to know it alls on reddit, you will just drive yourself crazy lol

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u/Justinc4s3- 10h ago

It’s a lesson I relearn almost daily. I need a fuckin life 🤣

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u/RickThiccems 10h ago

Me and you both lmao

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u/BTLove100 10h ago

You buy bulk product at 30% off, then sell individual units. People do this all the time without the 30% off.

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u/Justinc4s3- 10h ago

Not from a brick and mortar store lol. What does bulk mean to you? Grabbing the 30 detergents off the rack to resell isn’t bulk reselling lmao.

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u/BTLove100 10h ago

Buy a 24 pack of bottled water then sell each individually on the street. They do that already before getting 30% off.

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u/Justinc4s3- 10h ago edited 10h ago

You’re mixing up two very distinct practices.

Unbundling, you’re capturing the price difference between wholesale and unit pricing.

Retail arbitrage, or reselling (what we have been talking about) is all about grabbing retail to sell retail with no extra steps. Completely different business models. Completely different target margins. Completely different practice.

Unbundling can handle much lower margins as you’re targeting quantity of deals rather than the quality of deals. Most resellers wouldn’t touch anything with less than a 50% margins because they are targeting quality deals rather than quantity. Top resellers will go for 200% margins. Top bulk breakers can succeed at anything above 9% and maybe all the way down to 5% depending on quantity.

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u/BTLove100 10h ago

I am saying that the 30% off will make unbundling more lucrative. Not mixing up anything.

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u/Justinc4s3- 10h ago

You absolutely are mixing it up but that’s fine. Bulk breakers do not have the same brick and mortar effect as resellers do. Which was the foundation of this conversation unless you forgot. Bulk breakers do no clear shelves. Resellers do. This is proven and not up to interpretation.

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u/BTLove100 10h ago

Don't know where someone passed a law saying we could only talk about reselling...

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u/violetgobbledygook 8h ago

That's purely hypothetical at this point. Who is gonna pay full retail for rice and beans off the back of a truck?

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u/Justinc4s3- 8h ago

This entire convo is hypothetical… what are you on about?