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If you understand economy...

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stratoaxe View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote stratoaxe Quote  Post ReplyReply Direct Link To This Post Posted: 24 November 2011 at 1:29pm
Originally posted by agentwhale007 agentwhale007 wrote:

Originally posted by stratoaxe stratoaxe wrote:

 The grocery industry BARELY broke even then, and in fact has had a notoriously thin profit margin.

Grocery stores are really interesting, as far as their business practices. 

It's true that they have extremely narrow profit margins. And if you look at it, it makes sense, even from overhead. They have a lot of employees, generally. They are open for very long hours. They have to pay for large freezer storage and refrigeration storage. They, I believe, eat a portion of the unsold goods (Although I may be wrong about this). 

They're able to survive and thrive with such a narrow profit margin because of the nature of the grocery market. 

Everyone buys groceries. The customers are literally almost everyone. When a recession hits, people may buy fewer groceries, but almost everyone still buys groceries. 

So that leads to the big, big chunk of what else contributes to grocery stores riding such a thin profit margin: 

Marketing. 

Advertisements on both TV and in newspapers. Radio spots. Fliers. Offering coupons. Buy-1 Get-1 deals. Buying clubs like Kroger and Winn-Dixie operate. 

That all gets really, really expensive. 

But they know the customer base is there. They don't need to convince people to buy groceries, they need to convince people to buy groceries at their business, and to continue to do so. 

(That had nothing to do with Obama and the economy, I just dork out reading about grocery businesses).
 
 
One of the things that fascinates about the inner workings of the grocery industry is how dependent they are on individual elements in their management system. They have some TIGHT leadership systems. Managing a grocery store is both more stressful and better paying than most people would believe. I think my local grocery store paid around 40 or 50 grand to its managers and 100K plus to its store directors.
 
Honestly, if all else fails after my bachelor's, it wouldn't bother me one bit to do something like that. Good money and a busy job.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote deadeye007 Quote  Post ReplyReply Direct Link To This Post Posted: 25 November 2011 at 1:02pm
It has to be stressful to sell all of that food before it goes bad. I've always wondered how much money stores throw away in expired products.
Face it guys, common sense is a form of wealth and we're surrounded by poverty.-Strato
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God View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote God Quote  Post ReplyReply Direct Link To This Post Posted: 25 November 2011 at 2:36pm
Probably none, As expiration date approaches, pull product off shelf, donate to local food bank/soup kitchen, tax write off - charitable donation.
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stratoaxe View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote stratoaxe Quote  Post ReplyReply Direct Link To This Post Posted: 25 November 2011 at 3:02pm
Originally posted by God God wrote:

Probably none, As expiration date approaches, pull product off shelf, donate to local food bank/soup kitchen, tax write off - charitable donation.


Unfortunately, we threw away all of our expired stuff. When it got close to expiration they faced it to the front, depending on what it was it might get discounted, but it sat on the shelf until expiration when either an employee took it home or it was trashed.

We didn't have a real substantial amount of waste though, our managers were good at estimating customer flow. Most of our waste came from the deli, to be honest.

Usually if you hit a meat department up at store opening you can grab really pricey cuts of meat for next to nothing just because they're hitting expiration.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote deadeye007 Quote  Post ReplyReply Direct Link To This Post Posted: 25 November 2011 at 9:04pm
I think our local store just kept changing the dates on the meat after it expired ;)
Face it guys, common sense is a form of wealth and we're surrounded by poverty.-Strato
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Post Options Post Options   Thanks (0) Thanks(0)   Quote High Voltage Quote  Post ReplyReply Direct Link To This Post Posted: 25 November 2011 at 9:53pm
Reclamation. We threw out of date or damaged goods in the reclaim bins.
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