How do they make money off this?

[Dinner]

I went bargain shopping at Grocery Outlet today as they resell over stock groceries from the big chains but at steep discounts. Their produce kind of sucks and goes off in a few days so I avoid it but there are great deals on a lot of other stuff (canned goods, packaged foods, olive oil, bread, etc...) when I cam across a giant 20 oz bag Og Granny Goose brand potato chips for just $0.75. I bought some just to try them.

Surprisingly they are actually pretty good though I hardly eat potato chips these days I can still put them out as snacks when friends come over. So my question is how the hell can they make a profit selling a giant double sized bag of chips for just $0.75? Even if I assume they started out at $1.50 before the discount grocery store bought them that is still like $2.00 less than a regular sized bag of ruffles.

[jsorense]

They are made out of recycled packing peanuts?

[Dinner]

They taste like potato chips. There does seem to be something slightly different in the seasoning or maybe the oil they use but they are unmistakably potato chips.

[SlowwHand]

Kind of speaks to the profit margin that retailers make, doesn't it?

[ZEE]

my god i love one-starring Oerdin-Thrades™.... MY GOD.

[Alexander's Horse]

That's easy. They have people, probably children, slave away in Third World countries for like 1 cent an hour, use substandard potatos and oil that will probably give you cancer, certainly heart disease.

Bingo! 75 cent bag of chips, enjoy

[Aeson]

They are just harvesting credit card data and stealing your identity.

[loinburger]

I suspect that they're not out to make a profit, but are instead trying to cut their losses - when the groceries go to the discount store then they're considered a loss by the major chains, so if they can recoup a pittance then their losses are reduced

[Proteus_MST]

They just give granny a huge pot of boiling oil over a fire, give her a few truckloads of potatoes and then let her work 24/7, turning out potatoes into chips, without her getting paid a dime

[pchang]

The general rule in the informercial business was that you needed to sell things at 4X (or more) your manufacturing cost in order to make money.

[The Mad Monk]

I suspect that they're not out to make a profit, but are instead trying to cut their losses - when the groceries go to the discount store then they're considered a loss by the major chains, so if they can recoup a pittance then their losses are reduced

Yep, the only ones making a profit here is the discount store, anyone else involved is cutting a loss.

...what's the "best/sell/use by" date on that bag?

[Sava]

though I hardly eat potato chips these days

[giblets]

The big chains decided to get rid of Og Granny Goose brand potato chips because they weren't selling well and were a waste of shelf space that could be more profitably be used for chip brands that customers are willing to pay $3-4 for and sold them to Grocery Outlet for next to nothing and then Grocery Outlet made a profit selling the chips to a demographic consisting of cheapskates like you who want to shovel carbs, fat and salt down your digestive tract for as little money as possible.

[Sava]

that's an awesome story

[giblets]

You're probably fat and lying about working out a lot