>Your math is probably wrong because customer acquisition and retention is hard. At $5, you have to find 200 customers to make $1000. And you have to keep them

>Your math is probably wrong because customer acquisition and retention is hard. At $5, you have to find 200 customers to make $1000. And you have to keep them happy. Agree - unless you are Walmart or Amazon (or local equivalent) ... you can NOT compete on price Walmart does not have to "care" much about its millions of customers - where else are you going to buy Mac-N-Cheese? If Walmart loses a customer, they do not care ... nor do they care if they get another customer: because their sales model is very simple: be the "cheapest" option for XYZ there is ... and even if they are not the "cheapest" for one item, they are for the other 92 things in your basket - so you are going to check out anyway