Tesco misprice discussion area part 11

joshtbh

i saw a GOTW poster with an xbox360 and Godfather on it today.....and guess what. The poster didn't have any £20 off when you buy written on it! Have Tesco changed their offer?

Schamansky

VeryTrying wrote:

I think this explanation is a little confused between (a) the forecast and (b) the outturn. "The accounts" are, I assume, based on the price at which an item was actually sold, not the price it was expected/forecast to be sold at.

Therefore, if Tesco buy something for 60p and sell at £1, they make 40p profit on that item. When they sell at £1.05, they make 45p profit. That's it, easy! Nothing to do with accounts being calculated differently from when the buyers decided to increase the price - accounts are based on actual sales.

So Tesco make an extra 5p profit on each item.

Thank you. That's where I arrive at.

As long as the SEL states 1.00, only 1.00 can (legally) be charged, no matter what book value is put down in Tesco's inventory accounts.

Everything charged higher at the checkouts - though in accordance with inventory data - bumps up the real profit margin on the item. This extra money enters the company's financial accounts via the checkout.

It does not matter that it is - wrongly - counterbalanced by a higher inventory book value. As long as the SEL is wrong, the legal inventory value is still 1.00, not 1.05.

It is correct that no profit shows up in the accounts: because of the overevaluation of stock due to a mispriced SEL.

An additional profit of 5p is made - extra 5p have entered the company - and it has been made where it should not have been made. It just gets ghosted in a higher inventory value, and that's where it vanishes.

Till (equals overvalued inventory value) versus SEL (equals real value).

I'm not talking dodgy booking tricks at all, by the way. Not the accountants cause the error, but the person who messed up on the shelf label.

At the end, Tesco is 5p richer than it should legally be.
Unless the customer spots it and RnRs, then they're 1.05 down.

ocset

joshtbh wrote:

i saw a GOTW poster with an xbox360 and Godfather on it today.....and guess what. The poster didn't have any £20 off when you buy written on it! Have Tesco changed their offer?

As far as I’m aware they have not changed the offer, they just don't want to risk advertising ambiguous pricing on expensive items after the Console rush of September 06.:D
But they don't mind risking/cashing in on the advertising of their bread and butter items :cool:

Hey_Dude

joshtbh wrote:

i saw a GOTW poster with an xbox360 and Godfather on it today.....and guess what. The poster didn't have any £20 off when you buy written on it! Have Tesco changed their offer?

I was at a brand new store this week.

The posters were up - but someone had very carefully placed white stickers over the 'Save £20' bit.

If you didn't know they were originally there - you would probably have missed them.

Conclusion: The discount does not come off - if you can find a 'clean' poster and the items in stock, then you are in.

However this is very unlikely given we are into the fourth (?) week of this polava and most stores seem to have got their act together, generally meaning no posters!

Duder

Plushchris

Hey_Dude wrote:

I was at a brand new store this week.

The posters were up - but someone had very carefully placed white stickers over the 'Save £20' bit.

If you didn't know they were originally there - you would probably have missed them.

Conclusion: The discount does not come off - if you can find a 'clean' poster and the items in stock, then you are in.

However this is very unlikely given we are into the fourth (?) week of this polava and most stores seem to have got their act together, generally meaning no posters!

Duder

I know where there is one :cool:

VeryTrying_2

Schamansky wrote:

Everything charged higher at the checkouts - though in accordance with inventory data - bumps up the real profit margin on the item. This extra money enters the company's financial accounts via the checkout.

It does not matter that it is - wrongly - counterbalanced by a higher inventory book value. As long as the SEL is wrong, the legal inventory value is still 1.00, not 1.05. It is correct that no profit shows up in the accounts: because of the overevaluation of stock due to a mispriced SEL.

An additional profit of 5p is made - extra 5p have entered the company - and it has been made where it should not have been made. It just gets ghosted in a higher inventory value, and that's where it vanishes.

Still not quite right. "The legal inventory value" is of no relevance here. The remaining stock at the end of the year will be valued at the LOWER of cost or net realisable value, in this case the 60p Tesco paid for it in the first place. The sales figures have been increased further by all those extra 5 pences, without any additional increase in costs (or stock value). Therefore extra profit!

It might be only 5p extra, but every little helps (especially when you are aiming for over £2 billion).

marymilkmaid

Are people still getting banned from MR. T's ? Has any one heard from HO today?

joshtbh

dude, it seriously looked like a brand new poster. I had an R&R refused in that store 2 days prior for a DS which was advertised as £10 off with Lego Star Wars II which the discount didn't come off, so I didnt fancy my chances. Especially against the ultra mean CS staff that was on.

However there was a GOTW poster for the DS showing as FIFA07, and according to http://www.cpjackson.co.uk/cgi-bin/misprices/index.pl that discount wouldnt have come off either! Wish I saw it at another store!

joshtbh

Mary - yes, I have, got an R&R OK'd by them. Not been banned.

306NOTOUT

Update on my Motorola L6 problem. Went back to the store and was still offered the 10%. Refused and eventually think I have talked the Junior Manager to understanding where I am coming from. He has got to talk to his manager and I have got to go back on thursday. It was too high for him to authorise!!!