The big problem with Kamala Harris’s communist price controls is that she and all of the other Democrats always point to food and gas prices and leave everyone else alone. The truth is that grocery stores operate at the lowest profit margin of any area of business in the United States, at roughly 1 1/32 cents per dollar. The reason they can stay in business is because of the huge volume they do because everyone has to eat.
But, if you have been around as long as I have, you notice other things that grocery stores do now that they never did before. They had to find other ways to increase their cash flow. They have installed pharmacies, sell gift cards, and even sell flowers. That is why so many stores close due to theft. Their profit margins are low but the merchandise that is stolen is usually expensive.
Gas stations also suffer from a low profit margin. <Many people think the big companies are raking in a fortune, such as Exxon, 76, Shell and others. But, the truth is most of the big oil companies have moved away from owning those stations. Not enough profit, the money is in drilling the oil and refining it into gasoline. Today it is extremely rare to see a gas station that sells tires or repair cars. That is because there is very little profit in gas, so they now tick to their core businesses and gas stations all have convenience stores. They can’t gouge on gas, but they do on soda, chips and Slim Jims.
A first-term House Republican from Ohio, who operates a small chain of grocery stores, expressed concern that Vice President Kamala Harris’ grocery price control proposal could negatively impact family-owned businesses like his.
VISIT OUR YOUTUBE CHANNEL“We’re dealing with a lot. The net profit in grocery stores is about one and a half [percent] — if you’re doing really good, one and three quarters. Just in layman’s terms, it’s about a $1.50 for every $100 that you go through the registers. And what we’ve seen in the last three to four years has been pretty horrific,” Rep. Michael Rulli, R-Ohio, told Fox News Digital in an exclusive interview.
“This will be a nail in the coffin of this industry that no one can imagine.”
Rulli, who won a special election in June to replace retired Rep. Bill Johnson, R-Ohio, is now raising concerns about the impact of Vice President Kamala Harris’ grocery price control proposal on family-owned businesses.
Before his election to Congress, Rulli was a Republican state senator and played a key role in managing Rulli Bros., the mid-sized grocery chain founded by his father in 1917.
To explain what effect he argues price controls will have on his business, Rulli held up a bottle of Tide laundry detergent made by Procter & Gamble.
“If the Harris administration tells Procter & Gamble, which is based in Cincinnati, that this Tide right here that I’m selling today for $4.99 has to stay $4.99 for the next four years, what will happen is that Procter & Gamble will just simply choose not to make this product,” Rulli said. “And so that’s going to happen a lot.”
“Well, why would that matter to your viewers? It’s going to matter to your viewers, because this is the luxury of living in the United States of America, where the average blue-collar worker, Joe Bag of Donuts, would have an opportunity to buy some nice things in life,” Rulli said.
“What will happen in four years of a Harris administration is those 38,000 SKUs will go all the way down to 5,000 SKUs, and you will be living in Cuba or Venezuela.”
