What does it cost the suppliers… I heard some of the inquirys in duopoly..
the tactics they use. I no longer satisfied how they treat suppliers..
specials every week.. who REALLY pays for it???
Supermarkets Tactics. Specials Every Week
ilove on 06/06/2024 - 11:24
Comments
Bribing is such a harsh word - can't we call it incentivising or something? Surely the yuppie wnkers who "reach out" instead of "contacting" people can come up with something suitable?
Wonder if Aldi is the more better place to shop..
i would say an independant option like a local owned iga if you care that much and had the money to burn for the non-perishables. then maybe farmers market and indepnedant butcher for the produce etc.
IGA is usually MORE expensive
yeah…
which is why i saidhad the money to burn
but at least some of them are local owned so not directly funding the big 2.5. (colesworths, and aldi).
IGA, $13 for 12 slices of processed cheese.
not even the finest imported artisanal processed cheese?
@Brian McGee: As long as it’s got the Krusty Brand Seal of Approval. You can only find it on products which meet the high personal standards of Krusty the Clown.
Independents are supplied by metcash who also use the same tactics as Colesworth.
Keep in mind if a product does not sell well enough, it will be booted off shelves to make way for products customers want. It’s in suppliers best interest to participate in specials.
Also, specials are what customers are seeking out. Many of us here on ozbargain stock up during specials to avoid paying full price
no wonder softdrink, chocolate, biscuits and other assorted heavily processed junk food is always on special for 1/2 price
but rarely see fresh fruit, veg and meat on for 1/2 price
it will be booted off shelves to make way for products customers want.
The attitude of corporates to customers, is that customers get what they are given.
@mrdean: Why do you assume customers know what they want?
Generally a product or service is launched and customer demand follows.
Why do you assume customers know what they want?
You've misread me.
Customers get what they are given. What they "want" is irrelevant. Wants can be manufactured.
Maybe Grammarly should offer a free trial?
Might be a much more better place to shop!
Why do you care who really pays for the specials?
As long as the special price is the cheapest option available, I am good with that.
Yes, maybe. If suppliers are being forced to drop their sale prices (as opposed to the supermarket that is making the demands) then eventually that supplier might go out of business. You can;t sell at a loss for too long. After a while all the quality produce will be gone from the shelves and we'll only be able to get generic 'home branded' crap.
uh all those "suppliers" are big players in a small pond anyway
nestle, kellogs, kraft, etc dont feel sorry for them
No I was more concerned about the smaller guys. :)
@EightImmortals: those are the farmers who supply the supermarkets and get paid $1 a kg for their cherries and the supermarkets charge us $29.99
or who have to throw away 80% of their crop because they "look funny"
r who have to throw away 80% of their crop because they "look funny"
I've heard that some agreements with the supermarkets have conditions that essentially force a farmer to dump produce.
@mrdean: You'd think the growers would at least try to sell some of their stuff to organic outlets or at markets where people shop for nutritional reasons and aren't too worried about aesthetics?
@MrThing: Isn’t it consumers who are not buying the produce that looks funny? I know woolies sell the odd bunch brand as I buy it sometimes but consumers aren’t even buying much of that
@Dollar General: They need to have more of a crack. A couple wonky potato's and carrots is hardly a worthy effort
And it needs to be priced where U can't say no.
Farmers pick do a good job of this and price it in a way it's hard to say no…and they are a tiny player, imagine if a supermarket actually had a proper crack
It's free advertising, I bet suppliers are queuing up to be a featured promotion. Colesworth must expose millions of people to products by advertising on TV, in catalogues, and displaying at the end if aisles. And selling a million units of something with 30 cents profit earns twice as much as selling 100k of something at $1.50 profit. These suppliers have huge factories and machines that stamp this shit out at scale and when they have excess capacity I bet they pray that Colesworth contact them for a special. You don't really believe a bag of Kettle chips actually costs $9 to make do you?
Correct, the higher the "sale" the higher the profit margin the rest of the time. Most people are too stupid to realise that. (Occasional loss leaders excepted)
Anecdotally yes imo Aldi is significantly cheaper across the board, no big "sales" on grocery items, just flat lower prices 365 days a year.
The item at one store which is half price this week is often full price at the other store but with a big points incentive to buy. Obviously a massive markup
specials every week.. who REALLY pays for it???
Not on the same products.
Check out high-low pricing vs EDLP. Everyone makes money whatever pricing strategy they use, else they eventually go bust.
Aldi is mainly EDLP, as are the supermarket's home brands and selected brands. Better know brands participate in high-low pricing strategy.
i think smaller brands that work with bunnings (especially nurserys) prob cop it harder as far as the pricing shenanigans go
Bunnings is EDLP with the exception of clearance and Aldi pricing matching/beating pricing (and they don't do this using well known brands).
Do your best to direct your money to products & companies & suppliers & retailers that are ethical & honest.
the tactics they use. I no longer satisfied how they treat suppliers..
Then don't buy items on specials.
Don't don't items on discount in generally, as its always the OEM supplier who is doing the discount.
exactly
Often the supplier pays the retailer a rebate to fund a promotion. It's a complicated arrangement that can easily be rorted by the retailer.
When i was working picking up direct from suppliers to deliver to colesworth distribution centres i would often chat with them about that sort of stuff.
It seems to be a mixed bag from what they would tell me.
The little supplier companies get told what they are going to be selling their products for by colesworth and can suck eggs if they don’t like it.
Big companies get a little more say but not final word. From what i heard the only company that tells colesworth what to do is coke.
Interesting.
What gets more interesting is when colesworth decides they want to use a local supplier that is already selling their own products in those supermarkets to make their “homebrand” products which they will sell cheaper than the suppliers original product.
Often its the exact same products just packaged differently.
Then they do promotions etc and really kick the boot in to these unfortunate suppliers.The only real winners are the supermarkets. Thus why they make billions yearly.
Haven't the suppliers wised up to these tactics yet?
Or are they lured by the dulcet tones of the siren song sung by the colesworth buyers?
@mrdean: What can suppliers say to the biggest chains that stock and sell their products?
If they don’t sell at colesworth where will they sell?
They need the supermarket for distribution of their products. The supermarket doesn’t need them.
Funnily enough that same principle but reversed is why coke can dictate to supermarkets what they want.
Coca cola know if the supermarkets don’t play ball they will lose one of their biggest staples and draw cards thus lose profit and customers. Coke is a big enough product to stand on their own - not they would ever have to - because if say coles tried to play hard ball someone like woolies would bend over backwards to become the main seller.All fun and games.
@El cheepo: Are you saying that colesworth extort suppliers & tell them if you want to keep selling your branded product in our stores, you will supply us with a colesworth home brand version or else?
Are you saying that colesworth extort suppliers
I am passing along what Ive heard directly from suppliers.
Whether thats true or not is not for me to say with authority.
You can look at their profits and make your own judgement on how they attain those numbers.
Personally, i would hazard a guess that this type of practice is common amongst many businesses of all sorts.
@El cheepo: I have seen smaller brands, which started off selling into smaller specialty stores or health food chains, eventually end up in the majors. This could signal a change of ownership (eg bought by a corporate), or not. If they haven't sold out, I've often wondered if they'd have been better off not bothering trying to supercharge sales, but just stick with a slow organic growth. I see them struggling sales wise when in the majors, & often see steep discounts.
Specials are not for a customers benefits ultimately.
Specials are a form of advertising to get the customer in the stores door.
Once you are in a store you will most likely buy something else and its all about turnover for a business.
Just like rewards cards are crumbs from the table.
Suppliers usually pay for specials. They pay for a lot of things, promotions etc.
They pay for better shelf location and position in the store.There is a reason ColesWorth post billion dollar profits…
Colesworth is selling Morning Fresh 900ml at $9.50 each or $4.75 with 50% discount. Reject, Bunnings, Spudshed are retailing at $4.75 without discount. WTF!
Yep the half price offers are a scam, the two prices they offer are regular price and double price.
Yep. Another example, at Woolies normal price, Mission Tortillas, $4.50, Street Tacos $4.40. Spudshed, $3.49 and $3.29 normal price. On sale at Woolies, usually around $3.80.
Wife bought this Frozen Acai stuff the other day. Price on the retailers own site is $8. ColesWorth sell it for $9 normal price, was $6.40 on special. Probably what it should cost at most anyway.
All this points, double points, people paying a subscription for 10% off is crap. They've managed to convince (some) people they are getting a discount when probably still paying more than it should be.
Usually I know what we want and also I know the prices. Only buy in bulk when there is a 'special' that will last until next cycle - like 3-4 weeks.
This is for laundry, can food, etc… that can last longer.
Also some products have 'specials' one week in Coles, next week in Woolies. Just do a simple search.
What does it cost? Wasn't Coles caught bribing suppliers to put the prices where it suits Coles?