driftingcrane18 said:A retailer's margin really comes down to how fast they turn inventory and their total volume. It’s totally possible to negotiate a slimmer margin on these bags if it drives foot traffic and gets people to pick up other items while they're at it.
What looks like pocket change to you might actually make sense to a shop owner.
Everything seems fine on the surface.
However, this whole explanation regarding a 3.7% margin and a 25-cent surcharge per bag simply doesn't hold water. At least, not in my estimation.
What is the actual take-home for the retailers at the end of the day?
Or perhaps more crucially, how much of this revenue actually finds its way into the coffers of the NYC Government?
If the retail price sits at 2 dollars, the state is walking away with 40 cents.
That leaves $0.53 to be split between the retailers and the NYC Government.
Once you factor in production costs, distribution expenses, that 3.7% margin, and the extra 25 cents...
Frankly, wouldn't we have been better off sticking to the old plastic bags, seeing as everyone—from the government to the retailers, who aren't even truly part of this "model"—ends up earning just as much from this supposed "Swiss model"?