[scoofy]

It's a question of volume. If they're really going to sell things at a loss, then it should create real demand. If you have that demand, then you're going to start running out of groceries mid-day. At that point, the business sucks because you either have to show up at 10 AM to buy anything, or they start some ridiculous rationing program to prevent people and businesses effectively reselling at market rates, or they make up for their negative margins by increasing their volume and losing even more money.

It's a low margin, high volume business. I'm extremely skeptical that this plan works beyond just being a politically popular way to light money on fire. I say that as someone who actually like Mamdani.

[ceejayoz]

What if it was possible to stock products during the day?

[scoofy]

It sort of doesn't matter. The point is that if the goods are being sold below market value then you will either have shortages, rationing, or accelerating losses. This has always been a problem in non-market socialism.

[ceejayoz]

Costco sells chickens as loss-leaders.

They don't run out, and Walmart doesn't go buy all of them to resell.

[scoofy]

A loss leader isn’t a business model when everything is being sold at a loss.

The idea that Mamdani is going to undercut a low margin business with higher labor costs is just silly.

[ceejayoz]

> The idea that Mamdani is going to undercut a low margin business with higher labor costs is just silly.

Why?

Stock store/generic brands. Don't stock 40 variants of Colgate toothpaste that all have the same ingredients and are described separately as "fresh mint", "cool mint", and "mint". Stock more staples than sushi.

[scoofy]

I don’t think you understand what I mean when I say “low margin.” The types of products you are describing are the extremely low margin products.

People pay more for the 16 flavors of Colgate because they want to pay more for Colgate… that higher price means more margin for the retailer. By eliminating the higher margin products in an already low margin business, you are basically making the situation even worse.

The only reason why generic brands at stores can end up being high margin for the retailer is because the retailer has literally used their market position to start manufacturing cheaper versions of high margin products on their shelves. Unless NYC want to start manufacturing dryer sheets and toothpaste, that’s not an option for them.

[peyton]

I mean Costco’s a membership club. This is NYC. Of course somebody’s gonna show up with a truck and arb any profitable grocery item if there isn’t rationing.

[scarecrowbob]

Not being able to get stuff on a pallet or in a 5 gallon bucket or whatever has its own cost. Hell, not being able to invoice on NET30 or have a supplier or even not having to pick and pack stuff has a cost.