Youseff wrote:Brantt wrote:RichmondPhilsFan wrote:Brantt wrote:RichmondPhilsFan wrote:Brantt wrote:RichmondPhilsFan wrote:Supermarkets started laying off people last week because soda sales were down in Philly last month?
I'm calling #$!&@ on that.
Edited to add: That ShopRite owner is laying off 300 workers at six stores (50 per store) because he sells less soda? Yeah right.
And if it is true, that dude needs to improve his business model. 50 workers per store is probably 10% of his workforce, if not more (hard to estimate without knowing what his total operation looks like). Does that mean >10% of his revenue stream is made up of soda sales? Because remember, it was just a 30-50% decrease, not a total loss in sales.
https://www.bloomberg.com/news/articles ... much-as-50
Uh huh.
And I have to laugh at the idea of people living in the Philly area (where gas prices are nearly $3.00) will drive more than a couple of extra miles to not pay the soda sales tax, which amounts to less than the price of a gallon of gas. Some people may do that on the short-term, but they won't inconvenience themselves long-term if it doesn't save them money.
And again, these stores need to find a better model then if they were vulnerable to a dip in soda sales that they knew was coming.
What model would you suggest given how tight their margins are overall in the first place?
One that doesn't rely as heavily on one category of product. Allegedly.
OK, so come up with a business model to change people's behavior and buying habits while still making money.
Best of luck.
you just described the start up plan of every successful business, bruh. it's a tediously cliched word in silicon valley, but what you're describing is called "disruption" and it's exactly what every successful entrepreneur has done or strives to do.
Except it's not a start up business "bruh."
It's a fucking supermarket or corner store, many that have existed for decades selling the same product. You can't adjust your pricing models or you will be out of business quick given the level of competition you face.
We aren't talking about Silicon Valley.......we are talking about C-stores and grocery stores in inner cities.