A Save A Lot store converted to a co-op model, selling items at cost plus 10%, failed because customers were unwilling to pay the slight markup over wholesale. This contrasts with typical grocery store margins of 5-10% and a higher markup (e.g., 30%) on many items.
"most grocery stores walmart for instance they only make five to ten percent off all of their products to save a lot converted their save a lot grocery store in circleville to a co-op uh grocery store which was interesting so the deal is is called just save and all of the advertised prices were their cost they advertised everything for what it cost the grocery store to buy then when you took it to register they marked it up only only 10 percent and it was an absolute miserable failure and they end up closing the store because no one wanted to pay wholesale plus 10 percent"
