Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: Bigron on 15 September 2018, 17:33:13
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.....this strange retail pricing stratagem. Our local Poundland has spades and forks marked as "£5, or 2 for £5".
The staff declared it crazy, too! ??? ??? ???
Ron.
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BOGOF
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No need to be rude.
Ron.
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BOGOF
Yes, that is right. :y :y
It is all driven by volume; how many units the retail company has purchased, probably many tens of thousands across their empire, at a unit price that allows for such a seemingly crazy offer that you, and everyone else, starts talking about and the retailer hopes will drive thousands of customers into their stores!
It is great marketing that 'tells' the customer this retailer gives them 'fantastic offers', with two units being 'given away' for the price of one, so what other promotions are on offer in store? In fact they retailer has negotiated a unit price from the supplier that still gives them a great profit over the tens of thousands that will be sold when each is sold for just £2.50. The all important customers are happy and so is the retailer as other products are sold on the back of the extra footfall. That gives any retail company the yearly growth the business must generate to remain competitive and viable.
Smoke and mirrors Ron, smoke and mirrors!! ;D ;D ;)
With Poundland and the like it is still a big increase on "everything being £1"!! That is one reason why Poundworld and many 99p stores have gone to the wall. ;)
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Understood, Lizzie: I only wanted a spade but when told I could have two spades or a fork instead, I was delighted - not bad quality, either.
Probably won't last the 50 years that my old one lasted, but I may not, either! ;D
Ron.
x
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Understood, Lizzie: I only wanted a spade but when told I could have two spades or a fork instead, I was delighted - not bad quality, either.
Probably won't last the 50 years that my old one lasted, but I may not, either! ;D
Ron.
x
But at £2.50 each who cares eh Ron?! ;D ;D ;)
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As you were in Poundland, why weren't the spades a pound ..... ???
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BOGOF
Yes, that is right. :y :y
It is all driven by volume; how many units the retail company has purchased, probably many tens of thousands across their empire, at a unit price that allows for such a seemingly crazy offer that you, and everyone else, starts talking about and the retailer hopes will drive thousands of customers into their stores!
It is great marketing that 'tells' the customer this retailer gives them 'fantastic offers', with two units being 'given away' for the price of one, so what other promotions are on offer in store? In fact they retailer has negotiated a unit price from the supplier that still gives them a great profit over the tens of thousands that will be sold when each is sold for just £2.50. The all important customers are happy and so is the retailer as other products are sold on the back of the extra footfall. That gives any retail company the yearly growth the business must generate to remain competitive and viable.
Smoke and mirrors Ron, smoke and mirrors!! ;D ;D ;)
With Poundland and the like it is still a big increase on "everything being £1"!! That is one reason why Poundworld and many 99p stores have gone to the wall. ;)
Well said and explained Lizzie :y But of course this is all driven by the marketing people, and they do not always get things right.
I'm in the wine trade. I recently saw wine in Lidl at £2.99 a bottle
Minus VAT = £2.49
Minus Excise duty = £0.32
Trust me at .32p per bottle nobody is making any money, not even the empty bottle manufacturer
I recently met a senior manager from Lidl. He had no idea that excise duty was £2.17 per bottle. I just wonder ??????
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You notice these sorts of marketing techniques are far less common outside the UK (or UK holiday maker destinations). The British public is incredible thick, probably the thickest in the 1st world by some margin, hence your see less DFS or ECP style sales abroad.
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So the government takes the lion's share, as usjual, Mister Rog. >:( >:( >:(
Ron.
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You notice these sorts of marketing techniques are far less common outside the UK (or UK holiday maker destinations). The British public is incredible thick, probably the thickest in the 1st world by some margin, hence your see less DFS or ECP style sales abroad.
I think it is just a question of time before that sort of marketing makes it to the likes of Spain for example. We still have corner shops selling stuff at the same price as the big city i.e. rrp. The large supermarkets do offers but not the crazy ones I see in UK supermatkets.
On my infrequent trips to UK , I love going to a poundworld type shop with my dad and innocently picking something up and asking him how much it is andthen saying really. Simple pleasures.
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So the government takes the lion's share, as usjual, Mister Rog. >:( >:( >:(
Ron.
Yep! The odd thing is that the excise duty is the same regardless of the cost of the wine.
Excise duty on a bottle of wine at a vineyard price of €1 = £2.17
Excise duty on a bottle of wine at a vineyard price of €500 = £2.17
VAT is calculated on the actual cost of the wine plus the excise duty.
€500 ! I hear you say ! Yes. The most expensive wine in the world is probably Domaine de la Romanée Conti, which will cost you around £10,000 PER BOTTLE ! ( depending upon vintage of course ::) ) Not available in Lidl, Aldi, or Tesco ;) People who buy this are of course either Chinese businessmen or nuts, or both
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We buy very nice cava for 1 euro 65 cents. The bottles empty are heavy due to needing to be strong for gaseous contents. I have never got my head around the economics of it.
There again Spain , I think is the biggest EUropean producer of wine and sells millions of litres to France in tankers at 65 cents ( i read) . They then mix it with French wine and sell it on as French legitimately.
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I remember as a child in the 1970's my parents getting a bottle of wine for special occasions and it was always a Spanish wine called Don Cortez IIRC. :)
Looking back I think they felt really posh having wine on the table! :)
Although I bet it was like vinegar! ;D
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We buy very nice cava for 1 euro 65 cents. The bottles empty are heavy due to needing to be strong for gaseous contents. I have never got my head around the economics of it.
There again Spain , I think is the biggest EUropean producer of wine and sells millions of litres to France in tankers at 65 cents ( i read) . They then mix it with French wine and sell it on as French legitimately.
A bottle of wine, excise duty
UK = £2.17
Spain = 0
The French get really pissed off at Spain dumping wine in France. I know a dutchman with a large French vineyard, but the cheap wine he sells in Holland comes from Spain.
I import wine from France, all completely legal and done properly. I worked out that even if the actual wine was free from the vineyard, I still could not sell it for less than £4.50 a bottle. Transport, excise duty, storage & handling, VAT. And I have made no profit on that. Supermarkets can do it due to their size, plus they are happy to not make any or much profit in order to get customers into the shops. Also all of their wine comes from big producers, big enough to produce the huge quantities required.
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BOGOF
Yes, that is right. :y :y
It is all driven by volume; how many units the retail company has purchased, probably many tens of thousands across their empire, at a unit price that allows for such a seemingly crazy offer that you, and everyone else, starts talking about and the retailer hopes will drive thousands of customers into their stores!
It is great marketing that 'tells' the customer this retailer gives them 'fantastic offers', with two units being 'given away' for the price of one, so what other promotions are on offer in store? In fact they retailer has negotiated a unit price from the supplier that still gives them a great profit over the tens of thousands that will be sold when each is sold for just £2.50. The all important customers are happy and so is the retailer as other products are sold on the back of the extra footfall. That gives any retail company the yearly growth the business must generate to remain competitive and viable.
Smoke and mirrors Ron, smoke and mirrors!! ;D ;D ;)
With Poundland and the like it is still a big increase on "everything being £1"!! That is one reason why Poundworld and many 99p stores have gone to the wall. ;)
Well said and explained Lizzie :y But of course this is all driven by the marketing people, and they do not always get things right.
I'm in the wine trade. I recently saw wine in Lidl at £2.99 a bottle
Minus VAT = £2.49
Minus Excise duty = £0.32
Trust me at .32p per bottle nobody is making any money, not even the empty bottle manufacturer
I recently met a senior manager from Lidl. He had no idea that excise duty was £2.17 per bottle. I just wonder ??????
Yes, it is not a lot per unit. But in multiple retailing it is all about just that; multiplication.
That 32p per bottle turns into x12 per case, x 30 cases per store (probably a very big underestimate!) x 10,000 stores that Lidl operate worldwide = £792.000 for just one simple product. Then you take into account that Lidl run their stores with minimal staffing, so keeping the major selling expense of the wage bill at the lowest level, whilst putting out unpacked cases of product direct onto the shop floor. Then as I stated before, there is the pulling power of the promotion that will continue to draw in the regular and, they hope, extra custom that will give the company year on year growth. Like Aldi, Lidl specialise in giving the customer the cheapest possible deal, regardless of product source and quality, which they promote very aggressively through TV and general media advertising. That is why their market has been growing fast, but their profits have been hit, in part by increased staffing costs, store expansion, but also by their marketing policy. The cost of selling cheap and fighting, in Britain at least, the other big 4 supermarket chains will ALWAYS effect these retailers profits in the long term, like it affects all retailers who try it. My old company Chairman always did use as a manta the message "you cannot buy sales" and he was absolutely right.
Any retailer who ignores the need to make profit their number one target is in real danger of going out of business, just as so many have in the past. ;)
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It was on the news the other day that Tesco are planning on opening some "cheap" supermarkets to take on the likes of Aldi/Lidl.Working name so far for these new stores is Jacks,although that may change before opening.
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It was on the news the other day that Tesco are planning on opening some "cheap" supermarkets to take on the likes of Aldi/Lidl.Working name so far for these new stores is Jacks,although that may change before opening.
Yes, Tesco and the others of the big 4 are running scarred of the Aldi and Lidl threat, but they must keep their eye on those essential profits. The shelf life of these "cheap stores" may not be a long one as the balance between giving the customer what they want, with great service standards, and making that profit is a fine one and can soon tip into non-viability. Time will tell. ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
No, not necessarily.
It is about Sainsbury's at the upper / middle class end of the supermarket world securing a market at the lower end, so they can both benefit from a wider customer mix and gain the all important extra margins by upping their buying power, which just may mean Sainsbury's can reduce their retail prices to fight Lidl and Aldi and stay in the game. ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
Indeed, they are doing that all over and by doing so they are increasing the footfall into their stores, fully absorbing the online potential of Argos which they will develop to include the Sainsbury's offer, whilst cutting the cost of the Argos operation by closing their smaller retail stores. Strategically a very clever move, that will only get better with the coming on board of Asda and the further development of the now essential online business. ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Yeah, have a Morrisons instead. :y
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Not necessarily...
https://m.thegrocer.co.uk/566476.article?mobilesite=enabled ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
Not necessarily...
https://m.thegrocer.co.uk/566476.article?mobilesite=enabled ;)
There you go, that piece basically covers what I was explaining. A great move, but maybe not for suppliers, as with extra buying power will come a squeeze on them (as it always has been!) :D ;)
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Lidl and Aldi have been around a long time.
Good offeringboth in UK and over here. Plenty of customers I would suggest not going anywhere.
When the next crash comes they will be well placed.
What I dont understand is the merger of Asda and Sainsburies. Is it about economies by closing sites where both have a presence on the same retail park?
I live near a Sainsburys so use them because of the closeness, so was concerned that they would fall to Asda level. No need to worry as since they revamped the store to accommodate Argos, the Asda the other side of town is much better. ;D
It is probable one might close of course ;)
No, as I stated it is about Sainsbury's at the upper / middle class end of the supermarket world securing a market at the lower end, so they can both benefit from a wider customer mix and gain the all important extra margins by upping their buying power, which just may mean Sainsbury's can reduce their retail prices to fight Lidl and Aldi and stay in the game. ;)
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Lizzie remember a time when nothing from Woolworth cost more than 6d (a tanner) :) :-* :-*
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Lizzie remember a time when nothing from Woolworth cost more than 6d (a tanner) :) :-* :-*
Yep, and after they had to abandon that great USP, plus cease to look like Woolworth's should, the game was over. They became just another store without any place in the ultra competitive retail market and their customer base disappeared. Just like with recent retail casualties :'( :'(
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
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Strange how Woolworths failed, yet in recent years companies like Wilko and The Range have flourished! :-\
What happened? ??? Did Woolworths just get too complacent? :-\
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Strange how Woolworths failed, yet in recent years companies like Wilko and The Range have flourished! :-\
What happened? ??? Did Woolworths just get too complacent? :-\
The range and wilkos sell furniture, garden equipment and the likes, not pick'n'mix and kids toys.
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Strange how Woolworths failed, yet in recent years companies like Wilko and The Range have flourished! :-\
What happened? ??? Did Woolworths just get too complacent? :-\
The range and wilkos sell furniture, garden equipment and the likes, not pick'n'mix and kids toys.
There you go then! ::)
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
By staying away from brands, it can be significantly cheaper (though not worth the effort over Tesco/Waitrose for us to do a 30m round trip), but there is only one edible form of Beanz, and Lidl don't do it.
Plus the veg in the local ones round here looks a bit ropey, but then looking at the clientele around Bicester and Banburyshire, I guess it bit doesn't get a high turnover...
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
By staying away from brands, it can be significantly cheaper (though not worth the effort over Tesco/Waitrose for us to do a 30m round trip), but there is only one edible form of Beanz, and Lidl don't do it.
Plus the veg in the local ones round here looks a bit ropey, but then looking at the clientele around Bicester and Banburyshire, I guess it bit doesn't get a high turnover...
Possibly.....but it's not the soggy crap from Heinz.
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Beanz Meanz Heinz
Nought else allowed in TB Towers.
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Beanz Meanz Heinz
Nought else allowed in TB Towers.
Have you not tried Branston baked beans TB? They are THE best, ever! :-* :-* ;D ;D ;)
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
By staying away from brands, it can be significantly cheaper (though not worth the effort over Tesco/Waitrose for us to do a 30m round trip), but there is only one edible form of Beanz, and Lidl don't do it.
Plus the veg in the local ones round here looks a bit ropey, but then looking at the clientele around Bicester and Banburyshire, I guess it bit doesn't get a high turnover...
In terms of the supermarkets, you will never beat the quality and lasting capability of Sainsbury's fresh veg and fruit. It is excellent, and I have proved often that it outlasts all the others by a long way 8) 8) ;)
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Beanz Meanz Heinz
Nought else allowed in TB Towers.
Have you not tried Branston baked beans TB? They are THE best, ever! :-* :-* ;D ;D ;)
Yup, bought a tray of 24 from Costco because they were a little bit cheaper than real Beanz.
I really tried, must have had 4 tins, before taking the rest to a foodbank.
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Beanz Meanz Heinz
Nought else allowed in TB Towers.
Have you not tried Branston baked beans TB? They are THE best, ever! :-* :-* ;D ;D ;)
Yep...much better than Heinz as are many others. In independent blind tests Heinz usually come 4th or 5th.
I'll buy them when they are 4 tins for a quid but not otherwise.
You have been duped by the power of advertising, TB. :)
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
By staying away from brands, it can be significantly cheaper (though not worth the effort over Tesco/Waitrose for us to do a 30m round trip), but there is only one edible form of Beanz, and Lidl don't do it.
Plus the veg in the local ones round here looks a bit ropey, but then looking at the clientele around Bicester and Banburyshire, I guess it bit doesn't get a high turnover...
In terms of the supermarkets, you will never beat the quality and lasting capability of Sainsbury's fresh veg and fruit. It is excellent, and I have proved often that it outlasts all the others by a long way 8) 8) ;)
I think Waitrose is better. Not that I ever go in to supermarkets, but I do pretend to show an interest after she's been...
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Lidl cheapness does NOT mean low quality.
I could give you a shed load of examples but in the first instance point you at their Wines.
Sorry I don't agree. I often buy wine in Lidl mainly to see what you get for your money. If you just want something wet with alcohol in it fine, you'll do that for £5 or less. But i've never bought anything that has got me going back for more. Recently I bought a Barolo for £10. Now Barolo is a real favourite with me and it's expensive. This was utter crap, no wonder it was £10 (most Barolo is £20+). They have a Primitivo at £5 which is good for the money. Sorry, Tesco is generally better quality on wines, but not quite as cheap.
Ok, so i'm in the wine trade, but I still buy wine just like Joe Public, and no I'm not such a fussy b****rd ::) well, maybe just a little bit ;)
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You have been duped by the power of advertising, TB. :)
Mrs TB has tried secretly fobbing me off on other brands, or non Birdseye fish fingers, but she doesn't now, as she got sick of me throwing it at her, then ringing up for a takeaway. She used to wonder how I knew, but you can tell it a mile off.
Some things I cant tell, like McVities v Tesco Ginger Nuts.... ….so guess what she buys me ;D
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You have been duped by the power of advertising, TB. :)
Mrs TB has tried secretly fobbing me off on other brands, or non Birdseye fish fingers, but she doesn't now, as she got sick of me throwing it at her, then ringing up for a takeaway. She used to wonder how I knew, but you can tell it a mile off.
Some things I cant tell, like McVities v Tesco Ginger Nuts.... ….so guess what she buys me ;D
You are sometimes such a cruel bastard TB! ::) ::) ::) ;D ;D ;D ;D ;)