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Ideas: * it's helpful ground cover for the farmers? * the stores stock them not because they make money but because I'd be annoyed if I wanted one and they didn't have it? * some people buy dozens somehow?
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I use them in them in Asian foods when I can’t find the right pepper. Also breakfast tacos. At my local international grocer, I routinely see people buy even hotter habenero peppers by the bagful.
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Serranos are great! I don’t think many people just eat them whole, though. They’re great as a garnish. Just mix them with something like agave, cut into strips and mix it up. Yum!
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1) cross-sell, likely the product has a high attach rate to high(er) margin products 2) Cost of production is still lower than sales price. To be honest, I'd significantly increase price if I could as I doubt there's high elasticity around this price point.