Rohan says a big supermarket will always be cheaper than a small kirana shop, because it is big
Rohan says a big supermarket will always be cheaper than a small kirana shop, because it is big. His sister says being big is no guarantee of being the cheapest. Who is right?
Who do you think is right? Pick one.
The answer: His sister is right, a big shop has bigger rent and staff costs too; a small shop can match it on many items
Why
Rohan has half the picture right: a big supermarket buys in huge quantities, which lets it pay the wholesaler less per item and pass some of that saving on. But size also brings big costs — a large rented space, many staff, lighting and air-conditioning, and prices often set for a particular kind of customer. A small kirana shop has low overheads, buys from a nearby wholesale market, and the owner works the counter themselves, so on everyday items — atta, dal, oil, soap — it can match or beat the supermarket. Test it: compare the price of a few basic staples at both — often they are within a rupee or two, and the small shop wins on some, because its lower running costs cancel out the supermarket's bulk-buying edge. His sister is right: being big helps with buying power but does not guarantee the lowest price — a small shop's low costs can even it out.
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