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Why Fruits and Veggies Are So Cheap in Chinatown

wsj.com

21–30 of 246 posts

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#21

This is the snob effect. People like the author believe produce is cheaper because of poor quality. Does Chinatown respond by lowering prices further because people won't buy poor quality produce? If it weren't for prejudice then Chinatown groceries might price for more profit. The customers are missing out too. Marketing can fix this.

That's incorrect. Cheaper produce is generally known to be the best produce.

For instance, it's summer in the northern hemisphere right now. You can't turn around without running into a ripe stonefruit (peach, plum, apricot).

Because the local trees are bearing right now, not only do you get high quality produce, but you get it for cheap because there's a glut of supply. But if you want an orange, you settle for an expensive, tasteless orange flown in from Chile, cause it's winter down there and that's when oranges become ripe.

If you tried increasing prices of produce in Chinatown, people would laugh in your face and move on down. The Chinese culture is very food aware and value conscious.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#22

Growing up, I remember Marina Foods in Cupertino being much fresher than the other grocers. > Chinatown’s green grocers, in contrast, buy their stock from a handful of small wholesalers operating from tiny warehouses right in the neighborhood Chipotle tried hyper-localised procurement and processing. That backfired, since heterogeneity in sourcing and processing means heterogeneity in quality control. How do these ma…

Chipotle sells fast food. Grocers sell stuff you have to wash and cook for yourself.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#23

This is the snob effect. People like the author believe produce is cheaper because of poor quality. Does Chinatown respond by lowering prices further because people won't buy poor quality produce? If it weren't for prejudice then Chinatown groceries might price for more profit. The customers are missing out too. Marketing can fix this.

Or their prices are lower because their customers, being aware of overseas prices, are more sophisticated about pricing than a typical US shoppers and so the vendors can't get any with absurdly inflated prices.

I say this because I spent a dozen years living in southern Europe where, not only are all food prices lower, (eg a loaf of bread is often 1/10 what it is in the states and American brand boxed cereal and California wine is cheaper then in their paces of origin.) but also there are product differences that reduce prices but not quality (eg eggs and milk that don't require refrigeration, vastly less packaging, few advertisements)

So yes marketing would raise prices but by bringing in more naive consumers and raising their expenses.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#24

This is the snob effect. People like the author believe produce is cheaper because of poor quality. Does Chinatown respond by lowering prices further because people won't buy poor quality produce? If it weren't for prejudice then Chinatown groceries might price for more profit. The customers are missing out too. Marketing can fix this.

The volume of retail produce passing through Chinatown (NYC) is by far the largest in the city. Profits are made by volume not by large mark ups.

Free market has its advantages.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#25

This is the snob effect. People like the author believe produce is cheaper because of poor quality. Does Chinatown respond by lowering prices further because people won't buy poor quality produce? If it weren't for prejudice then Chinatown groceries might price for more profit. The customers are missing out too. Marketing can fix this.

That's incorrect. Cheaper produce is generally known to be the best produce. For instance, it's summer in the northern hemisphere right now. You can't turn around without running into a ripe stonefruit (peach, plum, apricot). Because the local trees are bearing right now, not only do you get high quality produce, but you get it for cheap because there's a glut of supply. But if you want an orange, you settle for an e…

"I figured the prices were cheap because the selection is all C-grade bok choy and yesterday’s bananas."

Literally from the start of the article. You and many others might not think like the author but there is a segment of the population who does.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#26
The USDA shares detailed data on food pricing.

http://www.ers.usda.gov/topics/food-markets-prices/food-pric...

Price Spreads from Farm to Consumer: http://www.ers.usda.gov/data-products/price-spreads-from-far...

They also have good data on regional differences, in case you were wondering why the author was excited about $0.50/lb bananas and $1 pomegranates.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#27

Earlier quoted context omitted.

That's incorrect. Cheaper produce is generally known to be the best produce. For instance, it's summer in the northern hemisphere right now. You can't turn around without running into a ripe stonefruit (peach, plum, apricot). Because the local trees are bearing right now, not only do you get high quality produce, but you get it for cheap because there's a glut of supply. But if you want an orange, you settle for an e…

"I figured the prices were cheap because the selection is all C-grade bok choy and yesterday’s bananas." Literally from the start of the article. You and many others might not think like the author but there is a segment of the population who does.

I was replying to your comment that marketing was going to "solve the problem".

See my comment above about how Chinese culture is food savvy and value conscious. Increasing prices won't increase profit, it will just decrease sales to very low levels, while people laugh and move on down to the next stall.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#28

Earlier quoted context omitted.

"I figured the prices were cheap because the selection is all C-grade bok choy and yesterday’s bananas." Literally from the start of the article. You and many others might not think like the author but there is a segment of the population who does.

I was replying to your comment that marketing was going to "solve the problem". See my comment above about how Chinese culture is food savvy and value conscious. Increasing prices won't increase profit, it will just decrease sales to very low levels, while people laugh and move on down to the next stall.

Interesting, because I assumed:

"That's incorrect. Cheaper produce is generally known to be the best produce.

For instance, it's summer in the northern hemisphere right now. You can't turn around without running into a ripe stonefruit (peach, plum, apricot). Because the local trees are bearing right now, not only do you get high quality produce, but you get it for cheap because there's a glut of supply. But if you want an orange, you settle for an expensive, tasteless orange flown in from Chile, cause it's winter down there and that's when oranges become ripe."

was a response to "People like the author believe produce is cheaper because of poor quality."

but okay whatever you say.

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#29

Growing up, I remember Marina Foods in Cupertino being much fresher than the other grocers. > Chinatown’s green grocers, in contrast, buy their stock from a handful of small wholesalers operating from tiny warehouses right in the neighborhood Chipotle tried hyper-localised procurement and processing. That backfired, since heterogeneity in sourcing and processing means heterogeneity in quality control. How do these ma…

I had the good fortune to grow up when Have Gun Will Travel was first broadcast. One of my favorite episodes was Gun Shy, where Paladin travels to Montana and visits Ma Warren's boarding house.

Ma's house was famous for its food. Paladin lived in San Francisco and enjoyed the city's finest, and he was surprised and delighted with what Ma Warren prepared in this remote area. She was obviously a talented cook, but Paladin wondered how she got such a variety of quality ingredients. She explained.

Ma knew all the local farmers and ranchers, and they would bring her their best produce and meats to serve in her boarding house. In return, she cooked for them too!

Ma didn't have a reputation for poisoning her customers.

I wonder if Chipotle's problems had to do with being a big nationwide chain trying to be hyper-local, instead of just being someone who knew her neighbors and what they grew?

Re: Why Fruits and Veggies Are So Cheap in Chinatown

#30
post #4

As always, you can copy and paste the title on Google and bypass the paywall or use the "web" link under the title. For those who won't bother, this is the TLDR version: "Chinatown’s 80-plus produce markets are cheap because they are connected to a web of small farms and wholesalers that operate independently of the network supplying most mainstream supermarkets ... Because the wholesalers are in Chinatown, they can…

Use this link instead, it bypasses the paywall, globally, everywhere, regardless of referer:

http://www.wsj.com/article_email/why-fruits-and-veggies-are-...

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