Crappier Supermarket Discounts in Low Socio-Economical Areas?

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  [Deactivated] on 18/01/2015 - 00:28

  +2

  Any other examples for me to ponder?

  I can't think of any instances myself (yet) when comparing the supermarkets I shop at. Perhaps I don't pay enough attention.

  Re: that drinking chocolate. Is it a fairly newish brand? Is the normal price usually cheaper than familiar branded ones like Cadbury? I just wonder whether they had to reduce it in the 'affluent' area's store in order to clear overstock (perhaps it hadn't been selling, because the buyer behaviours at that store might be more towards familiar brands like Cadbury or other more luxury brands… hence having to massively discount this stuff for quicker sale?

  While at the 'lower socio-economic' area's store, perhaps no such large discount was needed as sales of that brand were steady enough in comparison? I.e. buyer behaviour there was more towards less expensive brands over luxury/more expensive brands? (though I am assuming Avalanche ranks middle to low in price without discounts here - I've never bought or seen it myself).

  Just a thought anyway.

  Hence my question about other examples if you can remember any (brand comparisons specifically).

  Interesting stuff!

  • 

    scrimshaw on 18/01/2015 - 00:31

    +2

    I would also say it's a matter of supply vs demand, perhaps they had plenty of stock there that was selling well and they had no reason to give it a bigger discount.

    • 

      [Deactivated] on 18/01/2015 - 08:33

      +1

      Why'd you get negged o_O

      have a +1

  • 

    [Deactivated] on 18/01/2015 - 02:15

    -4

    pretty sure if stock isn't moving in one store, and there's heaps of demand in another store, they generally transfer the stock across to the store where there's a demand for it.

    • 

      [Deactivated] on 18/01/2015 - 02:23

      +2

      I'd be surprised if they do. Surely doing that across all stores would end up costing more (transport/logistics wise) than it would to simply tweak prices in each store to manage stock levels?

      But I don't know jack about any of this kinda stuff so you could be right.

      • 

        [Deactivated] on 18/01/2015 - 02:25

        i think it depends on the amount of stock i.e. it wouldn't be worthwhile transferring a box over, but if there's a whole pallet sitting in one store not selling then they would transfer it. obviously location plays a part as well.

      • 

        Settero on 18/01/2015 - 02:49

        @didsburydan:

        i really dont think this is what happens with clearance items.
        yea full priced items , or sale items maybe , but not clearance items..

      • 

        Tal_Shiar on 18/01/2015 - 10:31

        @Settero: it all depends on what the item actually is and what kind of market the store it's currently being sold at has for that item and then knowing a store that will take it on…

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  scatman00 on 18/01/2015 - 00:37

  generally, the big two (3) have uniform pricing on clearance range. I would put it down to in store 'slackness', i dare say it would have scanned at $3 if you took it to the register as they run a centralised pricing host file.

  Any other examples to compare ( especially on stuff youve actually taken to register) ?

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  Cheeper on 18/01/2015 - 02:12

  I have noticed that some stores of the same name discount clearance fresh food items more than others.
  Is it the store's manager that determines the clearance discount on such items?

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  RefusdClassification on 18/01/2015 - 04:04

  I thought grocery stores in lower class areas were cheaper than in posh suburbs like Vaucluse, Mossman or Orange Grove, or Ascot.

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  Davo1111 on 18/01/2015 - 04:55

  +2

  you might find in the poorer areas the reduced deals are slapped up quicker, rather than giving them time to reduce in price

  • 

    RockyRaccoon on 18/01/2015 - 06:21

    +3

    Spot on. Nearby me, there is a large number of retirement villages.

    Thru work I met one of the staff from one of the local supermarkets. I discussed this very point with her, saying they never had limited life date products on sale.

    She said they did, but they put them out around 10 am when the villagers tend to do their shopping. They snap up the short dated products at 10-20% off so there is no need to discount them any more.

    Where as the shopping centre further away will have 40% discounts on short dated food, with stickers on stickers reducing them more.

    Just like real deals on ozbargain tend to run out quickly…

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  GnarlyKnuckles on 18/01/2015 - 10:23

  +2

  Not sure about supermarkets, but differential pricing based on socioeconomic factors definitely operates in some fast-food joints; it's been 'exposed' on ACA etc. numerous times over the years. On those shows, the suggestion was that because the poor have no choice but to buy the cheaper 'brands' of fast-food, they get charged a stock-standard (high) rate for it. In richer areas, in order to sell much of it you have to make it more attractive, via 'extra special' deals. To get around supposed 'national pricing' (or at least 'state-consistent'), the individual places in the affluent areas run semi-permanent in-store 'specials'. A couple of examples of this here in VIC are the Brighton HJs, which always has an A4 sheet stuck up offering one of the large burgers for half price (not BOGOF; just half price, currently it's the "Aussie Burger" for $3.50), and the Clifton Hill Maccas where you can almost always get "2-for-1" on any large burger you want, with a docket thingy, or some similar type of special. Whereas nothing like this ever happens at the HJs/maccas in (de)-Preston, Reservoir, etc.

  • 

    [Deactivated] on 19/01/2015 - 01:01

    I reckon that's kind of a good thing, oddly enough. Not offering rock bottom discounts at fast food joints in the lower socioeconomic areas, like they do in the higher ones, while it may seem unfair, could actually function as a benefit by guiding them towards healthier options (if the fast food is closer to being on par price wise to gourmet/healthy takeaway options which tend to be slightly dearer as we know).

    At least you'd hope. I find it sad that the poorer among us are sociologically steered towards buying and eating cheaper and most often processed and less healthy food. But anyway. Complex topic.

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  [Deactivated] on 18/01/2015 - 11:46

  +1

  I think it also depends on the manager. For example the other day, the pre-packed baby leaves with beetroot mixed salad (180g) was on reduced for quick sale at Mentone woolies (Balcombe road) for $3.15 ( normal price is $4.00). I bought it . Came home , the wife had bought the exact same thing from the woolies on Nepean Hwy (same suburb) for $1.85.

  • 

    [Deactivated] on 19/01/2015 - 00:51

    Was it on special at the Nepean Hwy Woolies?

    That's a big price difference!

    • 

      [Deactivated] on 19/01/2015 - 07:31

      Nope. Both were reduced because they were close to their use by date.

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  morpheu on 18/01/2015 - 12:38

  also depends on the product, it's drinking chocolate, although popular not exactly a staple food item like say a loaf of bread or milk which everyone, rich or poor, usually needs to buy on a regular basis, if the same loaf of bread was consistently more expensive in the lower socio-economic area it would warrant closer inspection, might be other factors at work, change in AU$ for imported raw materials, drought/natural disaster(anybody still remember those $12/kg bananas?!), competition etc

  ps i bought this same drinking chocolate 2 days ago, there are 2 versions, the adult one with black label and gold lettering, and the kids version with white label and outline block letters which i got for $3.99, looked at ingredients, almost identical, must be that label!

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  terrys on 18/01/2015 - 15:47

  +1

  In NZ and Australia, the consumer groups "choice" magazine do these surveys every decade or so and confirm that supermarket deals are better in higher economic areas that lower. It probably isn't as much a case of targeting the populations, rather than there are usually more stores in the more affluent zones, therefore more local competition….

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  srhardy on 18/01/2015 - 16:11

  Ive noticed that KFC are all intendant franchise and they all provide different prices and sized chickens for the same order and it depends on where they are located. Also REDROOSTER does this too. Supermarkets vary depending on competition and profitability (I dont help as a consumer either)… Maybe we can dig up LENNIN and get the old soviet bread lines back? Nothing like uniformity by making everyone stand in a Q after all.

  Never gonna happen and when it does it dosent last…

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  [Deactivated] on 26/01/2015 - 00:19

  BWS recently deleted Ketel One from their range.
  They reduced the price accordingly to clear out the remainder of stock.
  Most Inner/South and Eastern Sydney stores sold it at $30 a bottle.
  Head out into the wild west though and most stores were $35, with a few (Revesby comes to mind) $40 and multiple bottles still on the shelf, whereas the other stores were sold out.

  As for uniform pricing, Woolworths does NOT practice it and Westfarmers does it on RRP items only.