It’s no secret that Lidl’s milk is cheaper than milk from other Supermarkets. But why is this?
The main reason Lidl’s milk is so cheap is because the company operates on a low-margin, high-volume business model. This means that they sell a lot of milk at a low price, which allows them to make a small profit on each sale.
In order to keep prices low, Lidl sources its milk from smaller, local farms. This allows them to avoid the high costs associated with larger dairy farms.
Lidl’s business model has made it one of the most successful supermarket chains in Europe. The company has been able to expand rapidly and now has over 10,000 stores in 27 countries. Lidl’s success shows that there is a demand for low-cost milk and that shoppers are willing to trade up for cheaper prices.
Why is Lidl milk so cheap?
The main reason Lidl’s milk is so cheap is because the company operates on a low-margin, high-volume business model. This means they sell a lot of milk at a low price, which allows them to make a small profit on each sale. In order to keep prices low, Lidl sources its milk from smaller, local farms—which allows them to avoid the high costs associated with larger dairy farms.
Conclusion:
Lidl’s cheaper prices are due to their business model and choice of supplier. Their focus on selling large quantities of milk at lower prices enables them to make small profits off each sale. To keep these prices low, they source their milk from local farms rather than opting for the higher costs of large dairy farms.