Why do Tesco insist on giving me money?

Azari

geordieracer wrote: »

No - Its ALL about stock levels and margins. This is how they work. They already have the goods so giving you £6 off whatever it is you regularly buy shows their supplier that they are shifting more of the product so they can negotiate a better price for it in the future when they need to buy in bulk again.

The vouchers have no monetary value whatsoever - it is NOT £6 or £9 at all, it is you who thinks it is but like all money off vouchers they have no monetary(or very little) monetary value whatsoever, so it is you who is wrong.

Sorry, this is complete bollux.

If I go to Tesco and get £1000 worth of goods by giving them £946 - using £54 worth of vouchers that they have given me that means that I have £54 in my bank account/pocket that I would not have otherwise had and Tesco do not have £54 in their bank account that they would otherwise have had.

You are overcomplicating the issue to the extent that you have blinded yourself to the fact that I am £54 better off and Tesco are £54 worse off.

globetraveller

A £6 off voucher has a monetary value of £6. For me- tesco is the only supermarket I use. I buy my usual shop and hand over £6 less of my money.

Zedicus

People get confused by some offers that may effectively cost the supermarket little or nothing - e.g. where they negotiate a big discount with the supplier and use it in a way that actually increases sales. But globetraveller is correct in that these straight 'money off your total shop' vouchers are effectively giving away cash. Obviously with the intention of getting some longer term return. Something has clearly gone wrong with the system in the OP's case.

randomfundraiser

right, hopefully my little contribution may help, been working for tesco for over 6 years as a cashier. the till spits, which we are talking about specifically, they are actually quite random, the chance of them coming out is dependant on a - how much you spend, b- how often you shop, c- what your actually buying, d- how busy that store is. if its a low turnover store its understandable to give out more till spits to bring in more customers and to retain thier customer base. im sure hundreds if not thousands of people have seen the £5 off electrics and selected non-food stuffs that have been coming out lately, from what ive seen, 90% of the time they come out when you spend over £10 in store. if you say then come in and buy something for 50 quid and use the voucher, it seems like your only spending 45 when actually youve spent 55. then take into count that product you bought from them actually only cost the company like 15-20 quid or something, therefore they are actually making 35 odd quid off you while also giving you a feel good factor by you saving a fiver.

Azari, i understand entirely where your coming from, its confusing but you and the others are essentially both right. money off vouchers dont cost tesco anything in the long run and actually makes them more money, unless you only ever buy the exact same things week in week out, in which case you do save money, dont think though that this would impact thier bottom line. it really doesnt, honestly, if anything it would only make a tiny, tiiiiiiny difference in their end of year profits, and tbh if i remember rightly profits last year or the year before were over 4.2 billion, so giving out £500,000 in vouchers for the chance to a-make more money and b-retain customers actually makes a ton of sense. to be frank, and dont take this the wrong way but these till spits just arent really targetted at people who constantly buy the exact same things, but hey if your saving money, keep at it, cant say no to a good thing, aaand your recurring shops makes me money :P free tesco shares that are given out for yearly performance

hope this clears it up a bit, but yeah tldr version, the vouchers are more random than you think, you are actually just really lucky, and that dont really effect tesco that much, aaaand dont stop shopping at tesco

geordieracer

Azari wrote: »

Sorry, this is complete bollux.

If I go to Tesco and get £1000 worth of goods by giving them £946 - using £54 worth of vouchers that they have given me that means that I have £54 in my bank account/pocket that I would not have otherwise had and Tesco do not have £54 in their bank account that they would otherwise have had.

You are overcomplicating the issue to the extent that you have blinded yourself to the fact that I am £54 better off and Tesco are £54 worse off.

No you dont at all. Can you spend this £54 anywhere else? No you cant. So there is no monetary value to the vouchers as they are specific to Tesco and that's it.

They will have already factored in your money off vouchers into what they forecast for the week/month ahead when they buy the goods themselves. What they are doing is ensuring that you always buy your goods at Tesco and no where else which is why they do it.

They are not £54 worse off as they have already accounted for it way before you even get given the vouchers which is why they give you them in the first place.It is only you who benefits - they dont lose whatsoever.

Zedicus

geordieracer wrote: »

No you dont at all. Can you spend this £54 anywhere else? No you cant. So there is no monetary value to the vouchers as they are specific to Tesco and that's it.

They will have already factored in your money off vouchers into what they forecast for the week/month ahead when they buy the goods themselves. What they are doing is ensuring that you always buy your goods at Tesco and no where else which is why they do it.

They are not £54 worse off as they have already accounted for it way before you even get given the vouchers which is why they give you them in the first place.It is only you who benefits - they dont lose whatsoever.

If you can't see from the posts above that Tesco is £54 worse off and OP is £54 better off there really is no hope for you.

OP has £54 in his wallet that would otherwise have been in Tesco's bank account. According to what he has said Tesco will never recoup that money because it has been used to stock up on things that he would have bought in subsequent weeks so the money is lost to them indefinitely.

Zedicus

randomfundraiser wrote: »

Azari, i understand entirely where your coming from, its confusing but you and the others are essentially both right. money off vouchers dont cost tesco anything in the long run and actually makes them more money, unless you only ever buy the exact same things week in week out, in which case you do save money, dont think though that this would impact thier bottom line. it really doesnt, honestly, if anything it would only make a tiny, tiiiiiiny difference in their end of year profits, and tbh if i remember rightly profits last year or the year before were over 4.2 billion, so giving out £500,000 in vouchers for the chance to a-make more money and b-retain customers actually makes a ton of sense. to be frank, and dont take this the wrong way but these till spits just arent really targetted at people who constantly buy the exact same things, but hey if your saving money, keep at it, cant say no to a good thing, aaand your recurring shops makes me money

Tesco obvious make money overall from issuing these vouchers otherwise they wouldn't do it.

Where they lose money is with savvy customers who simply use the vouchers to purchase non perishables that they would otherwise have bought in subsequent weeks. For those customers, the face value of the coupons is lost to Tesco for ever. (Although they may gain some benefit by retaining some customers who might otherwise have strayed.)

What seems odd in this case is that the OP is being bombarded with these vouchers and that does not seem to be a very effective way of spending that particular promotion budget.

geordieracer

Zedicus wrote: »

If you can't see from the posts above that Tesco is £54 worse off and OP is £54 better off there really is no hope for you.

OP has £54 in his wallet that would otherwise have been in Tesco's bank account. According to what he has said Tesco will never recoup that money because it has been used to stock up on things that he would have bought in subsequent weeks so the money is lost to them indefinitely.

no no no no .. The OP is better off but Tesco havent lost anything - they make it back through mark up on the goods that everyone else buys.

You really think that Tesco have not thought this through and are just giving people money left right and centre? No they dont. They are far more clever in how they do these things then you.

Azari

geordieracer wrote: »

no no no no .. The OP is better off but Tesco havent lost anything - they make it back through mark up on the goods that everyone else buys.

Be honest, you're trolling now, aren't you?

No one can really be that stupid.

By your logic Tesco wouldn't lose out if someone stole £6 from a till because "they make it back through mark up on the goods that everyone else buys".

That's beyond stupid and is the sort of logic used by people who think that stealing from large companies isn't really a crime.

geordieracer

Azari wrote: »

Be honest, you're trolling now, aren't you?

No one can really be that stupid.

By your logic Tesco wouldn't lose out if someone stole £6 from a till because "they make it back through mark up on the goods that everyone else buys".

That's beyond stupid and is the sort of logic used by people who think that stealing from large companies isn't really a crime.

You think Im 'trolling' because Im pointing out to you that your wrong?

No if someone stole £6 from the till then they will have lost £6 in cash. Your vouchers are not cash - you cannot use or spend them anywhere else - do you understand this at all?

Imagine you bought a tray of 24 cans of beans for £1. You then give away 4 cans of those beans but sell the rest @ 10p per can you have made 100% profit even though you have given away a percentage of your stock. you then buy 2 trays and give 8 away but still make 100% profit on that and so on and so forth until you can afford to buy them even cheaper @ 90p a tray because your buying in bulk and you are therefore making even more profit by still selling them at 10p per can and giving some away. You therefore have not 'lost' anything have you? This is exactly the same.

Again ill repeat what i said before - Tesco know what they are doing when they do these promotions - they have people that are far brighter then you and I working this all out so that they DO NOT lose money through their promotions.

You have saved money - they make you feel good that you have saved money so you go shop there again and tell your friends about this so even more people go to shop with them.

They do not lose out - they gain.