Customers love Trader Joe’s because of its relatively low prices.
During a recent trip to a Trader Joe’s location in New York City, the cheapest available ground beef cost $4.99 a pound, compared with $9.99 at a New York Whole Foods location, which was selling only organic. The lowest price for a liter of extra-virgin olive oil was $6.99 at Trader Joe’s, compared with $9.99 for the same size at Whole Foods.
Consumers view Trader Joe’s as high quality but inexpensive. How can Trader Joe’s afford to keep its prices so low?
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