Why Are Groceries Expensive?
"Why are groceries expensive? Well, to put it simply, the grocery industry is rife with markups and excessive fees that get passed down to you, the consumer. Add in the global supply chain issues and labour shortages and it is no surprise that grocery prices are going sky high." - Mitch (Doorway Drop Co-Owner)
Have you noticed your grocery bill increasing over the past year or two? There's no doubt that supply chain issues caused by the global impact of COVID-19 and mass labour shortages have impacted shelf prices. Those impacts aside, do you know the true cost of your groceries? Before we can talk numbers, let's talk about how groceries get to you.
The three main players in the traditional grocery supply chain: Food Producers, Distributors, and Retailers.
Food producers are the makers of the product. They are your cracker makers, your bakers, your farmers and everyone in between.
Distributors are the middle team to branch the gap between food producers and retailers. Distributors purchase products from Food Producers and resell it to retailers for profit. Retailers use distributors as they have large catalogues of products to make ordering products to fill their shelves easier. Why work with 1,000's of food producers directly when you can purchase those products all from one company? This framework means it's often imperative that food producer's get listed with distributors.
Retailers are the stores you shop at. They purchase products from a wide array of distributors and sometimes work directly with smaller producers. They resell products for a profit.
You're on Shelves, Now What?!
The pressure is now on your shoulders to meet the Retailer's expectations or risk being de-listed and losing this investment or worse, potentially being blocked from listing with Victoria Grocers in the future. Meanwhile, you have additional stores calling to carry your products (hooray!), but they have their own listing fees, minimum ad spends and requirements you need to meet.
Are you starting to see why the cost of groceries are increasing?
How is Doorway Drop Different?
Doorway Drop is on a mission to create a truly local marketplace that is geared to work for small and medium sized producers of all types. A mission that will help us on our path to make food more accessible for all. Afterall, we believe that food is a right, not a privilege.
By eliminating a storefront, building strategic partnerships and working directly with vendors as opposed to distributors, our shelf prices are, on average, 10-15% cheaper than your local grocery
store, Food Producers make, on average, an additional 5-10% AND we bring it right to your door.
Oh, and we never charge our vendors any listing fees, minimum ad spends or the like... because we just don't agree with that.
It's a Win-Win-Win
Compare and Save
Seeing is believing. We've crunched the numbers on a handful of products to show you how much you could save.
Check out some price comparisons of everyday prices between Doorway Drop and two, local, major grocery retailers below.
|Product||Doorway||Store A||Store B||Savings|
Red Pepper (ea)
Butter Sticks (1lb)
White Mushrooms (1lb)
Kettle Chips (ea)
Heritage O's (ea)
$1.30 - $1.95/ea
$0.80 - $1.00/ea
$1.50 - 1.80/lb
$0.66 - $1.00/lb
$0.50 - $0.70/ea
$2.00 - $2.50/ea
$7.96 - $9.35
Be Part of the Change
Start shopping with Doorway Drop and see how much you could save! Keep an eye open for new products, special offers and more as we work towards our mission of shaking up the traditional grocery industry.