Koios
Recreational Kibitzer
- Nov 12, 2012
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The local farmer's market prices are so cheap because the vendors pay very little rent. Supermarkets near the Market have complained bitterly about the low rents paid by market vendors and that they cannot compete with their prices.
The Market is located in a very expensive area of town so stores paying fairmarket rents have a big overhead cost that the Market vendors don't. That's why food is cheap there.
No true; as percentage of sales, booth rental at farmer's markets far exceed retail space leases by larger grocery chains.
The appeal, and why most things are sold at a premium price and not lower prices, is the sense among buyers that the goods being sold are more pure / fresh / local, when in fact, many vendors merely source produce from the same distributors the stores do.
We buy at Farmers Market because their produce is usually considerably cheaper than what we can get at Albertsons or Smiths. And the reason is that the overhead at the Farmers Market is so much less than the super market that the super market generally can't beat their prices. But unless we are buying a lot of produce, we don't make the extra trip to the Farmers Market. And we check the prices in the grocery flyers before we head out because often the supermarket will have a loss leader that is cheaper than the Farmers Market.
The same criteria applies to Walmart. We don't drive all the way to Walmart for a few grocery items even though we could save a few cents if we did. It's just not worth the time and trouble. But if we are already in Walmart for something else, we will pick up the bread or milk or eggs or whatever that we know we need.
Not true in this market (Seattle) since I've helped some friends (brand development / Web presence) who do the art-fair/farmer's-market circuit, and thus know the cost dynamic. The good ones, in the upscale areas that have folks who flock to them, charge a decent price for the dirt under the pop-up canopies, for only 2 days of use. It's a major cost component, relative to sales, which exceeds, greatly, typical cost per sq ft in retail, for a month, prorated to two days.
Maybe where you live is different.