How do supermarkets make money (profit)?

Supermarkets make money by buying low and selling high. According to many statistics, the overall gross profit of supermarkets is about 20%, some goods have high profits and some goods have low profits. Each supermarket has different bargaining power according to its own size. A large supermarket chain like Wal-Mart has very strong bargaining power, and can directly buy goods with very, very low ex-factory price from manufacturers. Because of his large purchase volume, it is easy for sellers to cooperate with them, and then when selling goods in their own stores, the price is similar to or even lower than that of other businesses in the market, so they can relax. In addition, supermarkets can also make money by renting shelves. Behind some big shopping malls, large enterprises are operating supermarkets and renting shelves to some merchants, who buy shelves in good locations before leaving the hospital. In this way, you can also earn more money. For example, there will be special products such as chewing gum condoms near the checkout counter in the supermarket. In fact, every area of the supermarket has a rental price, which is very flexible. The brighter the location, the higher the traffic and the higher the price. It can also be a brand promotion supermarket. For consumers, the same commodity has many brands. The competition between different brands is fierce. Supermarkets will face specific brands that are willing to advertise and promote their brands.

The overall gross profit of supermarkets is around 20%. Some high-profit commodities, such as towels, socks and snacks, have a profit of more than 30%, while some low-profit commodities, such as rice, cigarettes, drinks and water, have a profit of only about 10%. However, low-profit goods are the main source of profits for supermarkets, especially tobacco, alcohol and water. The bigger the supermarket, the lower the cost. Because the supermarket is big enough, someone will take the initiative to distribute the goods for you, and then settle the bill when it is sold out, so that you can save money on investment and purchase. But generally, no one will distribute the goods of cigarettes, wine and grain, so you have to buy them yourself in cash.

Take a supermarket of 200 to 300 square meters as an example, the investment is about 300,000 yuan, and the annual normal profit should be between150,000-200,000 yuan.