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11th October 2010, 00:56 | #81 | |
Always itchy
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11th October 2010, 01:12 | #82 | ||
Always itchy
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NB: That should say "outer walls" in the post just above this one. I realised too late to fix it.
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What most products are priced at is enough to cover buying them into the store, then the cost of running the store, then some profit. That last part is minuscule. Supermarkets make money by selling lots of things, not by selling few things and making tonnes off them. The specials are typically one of three things. A supplier cuts their sell price to us. They do this to drive uptake of their product, as this leads to an increased purchasing after the special finishes, a supplier pays us for every unit we sell (exactly the same reason), or, a Supermarket is selling a product at a loss (see: coke specials. No supermarkets make money selling coke - it's just to get people in the door). If we always operated at those prices on all products, there would be no money to pay the staff, or the power bills. (Pak'n'save's are cheaper because they sell fantastic volume, so can make even less off each item and stay open). I know there's a general opinion in this country that supermarkets are out to get you, and rip you off at every turn, and that the two chains are in cahoots, but the reality is there's not much money being made off you, and Progressive and Foodstuffs are two of the most aggressively competitive companies in the country. So much so that even that bastion of undercutting The Warehouse wasn't able to compete. As for the markets being cheaper for fresh produce, of course they are. Here's what happens: grower grows some produce, grower tries to sell it to supermarkets, supermarkets wont take it because it's not A-grade, grower sells it at a market for less. That attempted shit-storm a while back about the poor growers getting reemed by supermarkets was exactly because the supermarkets are only interested in buying A-grade, anything less isn't worth their while, because no one will buy it from a supermarket. They can get it cheaper from a stall in a carpark on Sunday morning. There's not really anything wrong with this system - if you're happy with (often times very slightly) lower quality stuff, and don't value your Sunday mornings, go to a market and get your produce for less. If you're on a limited income and time is not an issue, you'd be a fool not to buy from the many weekend markets. -last edit- I should add too, for a lot of stores in Wellington region at least, though probably nationwide, at the moment they are going backwards, and making a lot less money than they were this time last year. The recession hit us last, and is still having an impact now. Just more evidence that supermarkets are not the golden goose they're made out to be.
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11th October 2010, 16:40 | #83 |
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its a pretty basic system. but i cant spread my secrets for free! they'll come for me if i do!
I seem to remember doing something in an economics class (dont ask why i was in an economics class) about how little supermarkets make per purchase... it really is miniscule. its the farmers that are out to get ya! |
12th October 2010, 14:18 | #84 | |
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Pixie
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