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Tesco misprice discussion area part 11
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Clasics wrote:Don't forget that 3% is on TURNOVER, not profit, so if true the figure is HUGE, HUMONGOUS and morally disgusting.Clasics wrote:Maths was never my strongest subject so I am happy to be corrected but on T/O of 17.4 BILLION in six months , I believe that would equate to an overcharge figure of £500 MILLION, and OVER ONE BILLION POUNDS on full year T/O....
The thing is its not extra profit. The till price is the correct price set by buyers and commercial departments. That figure is used in all the accounts. So they budget for that price.
An overcharge occurs when the SEL is wrong, due to human eror. So its not extra cash in the pockets of shareholders. So really, 3% (or one billion a year) of sales have had incorrect SELs.
Its not an excuse, customers shouldn't be overcharged. But its not extra profit either. Also worth remembering that for every incorrect SEL causing an overcharge there will be one causing an undercharge. But in the same way, these don't loose Tesco money either.
Job with a tabloid newspaper anybody?0 -
Kimmywim wrote:Well have just got back from an hours trawl round Tescos, on my first R & R expedition, (I tell you I will never look at a SEL in the same way again!)
And found absolutely nothing, well a couple of maybes but I was too scared to try it out, there was a row of printers for 34.97 and one ticket said 24.97 but there was loads of the right price tickets around it and the other one I saw was dole fruit pots reduced from 1.99 to 1.40 and the yellow SEL ended on 14th of september, so I bought a couple thinking they would scan in at 1.99 but they didn't! Didn't have the heart to say that I didn't want them at the till! I think I must be rubbish at this R & R lark...
Don't worry and don't take it too seriously, keep your eyes peeled and only do it as a bit of fun. FWIW I think Tesco managers have had a kick up the !!!! and have mede a real effort to deal quickly with misprices, I also think CS are starting to make it tougher at claiming an r&r, so unless it is clear cut I wouldn't bother.
oh yes...and for those moaning at Tesco for over charging and huge profits
Tesco are no worse than any other supermarket and are the envy of every other Supermarket.0 -
wlfc1 wrote:oh yes...and for those moaning at Tesco for over charging and huge profits
Tesco are no worse than any other supermarket and are the envy of every other Supermarket.
And like all those others stores that were Number 1 at one time or another
a warning to Tesco.
It is the customers that make you No1.Pizz them off too much and they go elsewhere.Jesus said to him, "I am the way.The truth, and the life."
"No one comes to the Father, but through Me."
There can be only one 'GOD'0 -
Have all the x-boxers from over the weekend been sworn to secrecy from HO. Its tuesday and no-one has mentioned how they got on.0
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wlfc1 wrote:Don't worry and don't take it too seriously, keep your eyes peeled and only do it as a bit of fun. FWIW I think Tesco managers have had a kick up the !!!! and have mede a real effort to deal quickly with misprices, I also think CS are starting to make it tougher at claiming an r&r, so unless it is clear cut I wouldn't bother.
oh yes...and for those moaning at Tesco for over charging and huge profits
Tesco are no worse than any other supermarket and are the envy of every other Supermarket.Four guns yet only one trigger prepare for a volley.Together we can make a difference.0 -
bagand96 wrote:The thing is its not extra profit. The till price is the correct price set by buyers and commercial departments. That figure is used in all the accounts. So they budget for that price.
An overcharge occurs when the SEL is wrong, due to human eror. So its not extra cash in the pockets of shareholders. So really, 3% (or one billion a year) of sales have had incorrect SELs.
Can't follow here, no offence, please.
As far as it's taught in business and economics, profit is income minus cost.
So, if XYZ sells an item bought for £50 at £70, there's £20 profit (all overhead aside).
If XYZ overcharges at £90, however, the profit margin goes up by £20.
These £20 achieved margin increase have a direct effect on profit.
Or where do these extra £20 cash input remain?
Somebody please sort me out.0 -
Further to my problems with the overpriced Finest ready meals yesterday (Save £1....discount deducted at checkout), I telephoned HO, and told them CS had insisted the discount was already included in the price (they wrote this on the rear of my till receipt for me). Young woman I spoke to told me it was up to the store manager to decide if the price DID include the discount, or if the SEL was, in fact, wrong. I explained that, even if the discount HAD been taken off (I don't think it had), the SEL was still misleading. She said she would speak to the store and get them to look into it. Didn't seem particularly helpful, though.
TS, on the other hand, were more than helpful, when I pointed them to the fact that the entire Finest range had misleading price labels, and the fact that I have retained three of those labels (which were mistakenly placed into my bag by CS). So, even if I don't get my tenner back, hopefully my local store will get a rollocking.
BTW, before I get a roasting, I did think long and hard before ringing TS. I figured it would make no difference to Mr T and his R&R policy, but it made me feel a tad better.0 -
Right ho, folks. One of the people who has basically labelled all R&Rers criminals and thieves has opened a poll in the Discussion Arms. Please go and vote:
http://forums.moneysavingexpert.com/showthread.html?t=275997In a rut? Can't get out? Don't know why?
It's time to make that change.
Cover up all the pain in your life
With our new product range.
So please don't feel blue - let us show you how
To talk yourself into a good mood right now.
Feeling sad is no longer allowed,
No matter how worthless you are.0 -
Schamansky wrote:Can't follow here, no offence, please.
As far as it's taught in business and economics, profit is income minus cost.
So, if XYZ sells an item bought for £50 at £70, there's £20 profit (all overhead aside).
If XYZ overcharges at £90, however, the profit margin goes up by £20.
These £20 achieved margin increase have a direct effect on profit.
Or where do these extra £20 cash input remain?
Somebody please sort me out.
Ok, it is confusing I guess without some knowledge of the system.
Tesco buys a product X for 60p, and decides to sell it for £1. It goes in the system for £1 and the SEL prints and is displayed as such. From this point Tesco makes 40p profit per item sold.
For one reason or another the buyers decide the price of product X needs to increase to £1.05. From this point the accounts will be done on selling at £1.05, thus making 45p profit. The price is changed in the system and a new SEL will automatically print at a store.
This is where it goes wrong. Mr Price Integrity assistant has had a long day with very little help, and has already stayed 30 minutes over the end of his shift. He can't be arsed to stay any longer, what the hell its not worth it, probably won't get paid for his extra time anyway. Not his fault the management haven't sorted out enough staff. So he ditches the outstanding labels to be displayed, heads off home and couldn't care less.
Unfortunately one of the outstanding labels was product X. So the label is still displaying £1, even though it will scan at £1.05. So the unfortunate customers are paying 5p more than the label says. But, tesco aren't making an extra 5p per product sold, because the accounts are already being calculated at 45p profit from when the buyers decided to increase the price.
P.S. I hope you don't mind me quoting you in my signature. It was just so priceless, and sadly so true i couldn't resist!0 -
Thanks so far, bagand96.
No problem with your signature at all.Flattered.
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