Why do Tesco insist on giving me money?

geordieracer

Azari wrote: »

I still think you're trolling because I can't believe anyone could be this stupid repeatedly when about five people have told that you are wrong and explained why you're wrong. And not one single person has agreed with your bizarre stance.

Look at it this way:

Without Voucher:

I buy £50 of goods and give Tesco £50. Tesco have £50.

With voucher:

I buy £50 of goods and give Tesco £44 and a piece of their own paper. Tesco have £44 and a piece of their own paper.


Thus Tesco have £6 less than they would otherwise have had.

Please explain how that voucher replaces the £6 that would otherwise go towards Tesco's profits. Where, as a specific result of issuing the voucher do they get £6 to recompense them for the £6 I still have in my pocket.

Because they have factored in the £6 discount to you already therefore the goods are priced up to cover this. Its really not rocket science is it. You have not taken £6 off them. They have given you this to make sure you shop with them.

Look at it another way - shops that have sales - you think debenhams with their constant 25% off blue cross sales. Have you taken 25% from them? No you havent. They have given you an incentive to buy from them. They are still making money from giving you the discount on what you may not have bought and others have purchased at full price. Therefore they have not lost any money whatsoever as it is budgeted for before it even gets onto the shop floor and is priced up.

Zedicus wrote: »

You may not be trolling but you seem to be extremely confused. My guess is that you are repeating some half forgotten lesson from a long time ago.

By what weird and wonderful algebra do you manage to come up with a situation where one party to a transaction has saved a sum and yet it hasn't cost the other party anything?

You are correct in that Tesco believe that issuing these vouchers is in their long term best interest but that does not mean that it doesn't cost them anything. They will have a budget for all promotions and the cost of these vouchers, together with any other promotions they might come up with will be taken out of that budget. If you believe that someone at Tesco Towers says something like, "Oh, we'll dish out vouchers to people - it won't cost us anything because we'll make it up selling other things to other people", you are mind numbingly naive.

The wonderful algebra you think i may have thought up is actually thought up by people who know what they are on about and is how they can do things like this.
It does not cost them anything as they have already purchased the goods to sell. They will sell to most people at the normal marked up price which will cover them for anything that they give away - which is why i used the tray of beans analogy. If your making profit from normal means that enables you to give away a certain amount of stock for free and still cover the cost of what you bought in the goods at and still make profit - even though you are giving away stock to some people for free.

If they didnt state that a money off voucher had no monetary value then they are not losing any money. If it did - then they would.

As it is they dont. And thats why they make over £3 billion profit per year. A company that gives away money does not make profit yet they make profit and still can give discount(because thats what it is) vouchers to people.


If you really think Tesco are losing money this way then you best email them and let them know because they would stop doing so would they not?

Trouble is they are not losing money at all through this - they are gaining because of the goodwill and people using them over and over.

globetraveller

geordieracer wrote: »

Because they have factored in the £6 discount to you already therefore the goods are priced up to cover this. Its really not rocket science is it. You have not taken £6 off them. They have given you this to make sure you shop with them.

I am taking £6 from them. If they didn't give me the voucher I would have spent that money anyway. I have the whole superstore to pick what I'm buying.They haven't dictated what to buy.
So- they have lost £6 of money that I would have given them without the voucher. I'm happy. They're happy. I just hope they keep the vouchers coming:rotfl:

geordieracer

globetraveller wrote: »

I am taking £6 from them. If they didn't give me the voucher I would have spent that money anyway. I have the whole superstore to pick what I'm buying.They haven't dictated what to buy.
So- they have lost £6 of money that I would have given them without the voucher. I'm happy. They're happy. I just hope they keep the vouchers coming:rotfl:

Do you really think that such a big company like Tesco - the biggest retailer in the UK - has not factored into its whole policy and pricing discount vouchers and clubcard points before they put the stuff on the shelves?

That is why you have not taken £6 off them. because its already been done before the stock has hit the shelves.

They have done it so you think that your taking money off them but your not. They have conditioned your brains to such an extent that you think your winning but your not. They have already done the math. And they make you think your taking money out of their pockets but it is them who are taking it out of yours.

Amazing.

Moglex

geordieracer wrote: »

Because they have factored in the £6 discount to you already therefore the goods are priced up to cover this. Its really not rocket science is it. You have not taken £6 off them. They have given you this to make sure you shop with them.

Look at it another way - shops that have sales - you think debenhams with their constant 25% off blue cross sales. Have you taken 25% from them? No you havent. They have given you an incentive to buy from them. They are still making money from giving you the discount on what you may not have bought and others have purchased at full price. Therefore they have not lost any money whatsoever as it is budgeted for before it even gets onto the shop floor and is priced up.





The wonderful algebra you think i may have thought up is actually thought up by people who know what they are on about and is how they can do things like this.
It does not cost them anything as they have already purchased the goods to sell. They will sell to most people at the normal marked up price which will cover them for anything that they give away - which is why i used the tray of beans analogy. If your making profit from normal means that enables you to give away a certain amount of stock for free and still cover the cost of what you bought in the goods at and still make profit - even though you are giving away stock to some people for free.

If they didnt state that a money off voucher had no monetary value then they are not losing any money. If it did - then they would.

As it is they dont. And thats why they make over £3 billion profit per year. A company that gives away money does not make profit yet they make profit and still can give discount(because thats what it is) vouchers to people.


If you really think Tesco are losing money this way then you best email them and let them know because they would stop doing so would they not?

Trouble is they are not losing money at all through this - they are gaining because of the goodwill and people using them over and over.

geordieracer wrote: »

Do you really think that such a big company like Tesco - the biggest retailer in the UK - has not factored into its whole policy and pricing discount vouchers and clubcard points before they put the stuff on the shelves?

That is why you have not taken £6 off them. because its already been done before the stock has hit the shelves.

They have done it so you think that your taking money off them but your not. They have conditioned your brains to such an extent that you think your winning but your not. They have already done the math. And they make you think your taking money out of their pockets but it is them who are taking it out of yours.

I have to hand it to you, this is one of the most outstanding examples of heroic failure I've ever encountered. Everyone is telling you that you are wrong and why you are wrong and not one single person has agreed with you and still you persist with your tilting at windmills.

Part of your problem is that you seem to have no concept of budgets. Tesco accept that these vouchers cost them money but expect that the eventual benefits outweigh the costs. They allocate a budget for the vouchers in the same way as they allocate a budget for advertising. Or do you seriously believe that advertising costs them nothing because they make the money to pay for it by selling good?

The second part of your problem is that you don't seem to understand the difference between giving someone a voucher to spend pretty much as they wish and 'discounting' something. In the first instance they have ceded control to the customer whereas in the second they are merely changing a price point but the customer will only get the discount if they buy exactly what the company wants them to buy.

Your third problem is that you seem to have missed the main point of this thread which is that Tesco's voucher allocation system seems to have encountered a bug and one shopper is getting a significant amount of money off each week that s/he is using to stock up on things that s/he would otherwise have had to spend money (at Tesco, one presumes), in the following weeks. There's only so much loyalty that a supermarket can get from one customer and Tesco have long since passed the point of diminishing returns. They, at this point, are simply handing the OP money.

-katied-

Wish they would give me vouchers never had a till spit yet

geordieracer

Moglex wrote: »

I have to hand it to you, this is one of the most outstanding examples of heroic failure I've ever encountered. Everyone is telling you that you are wrong and why you are wrong and not one single person has agreed with you and still you persist with your tilting at windmills.

Part of your problem is that you seem to have no concept of budgets. Tesco accept that these vouchers cost them money but expect that the eventual benefits outweigh the costs. They allocate a budget for the vouchers in the same way as they allocate a budget for advertising. Or do you seriously believe that advertising costs them nothing because they make the money to pay for it by selling good?

The second part of your problem is that you don't seem to understand the difference between giving someone a voucher to spend pretty much as they wish and 'discounting' something. In the first instance they have ceded control to the customer whereas in the second they are merely changing a price point but the customer will only get the discount if they buy exactly what the company wants them to buy.

Your third problem is that you seem to have missed the main point of this thread which is that Tesco's voucher allocation system seems to have encountered a bug and one shopper is getting a significant amount of money off each week that s/he is using to stock up on things that s/he would otherwise have had to spend money (at Tesco, one presumes), in the following weeks. There's only so much loyalty that a supermarket can get from one customer and Tesco have long since passed the point of diminishing returns. They, at this point, are simply handing the OP money.

No you have missed the whole point. again like everyone else in this thread who does not understand who the big supermarkets work.

Ill go slow for you now and quickly as i need to go on holiday -

Before they even price up the goods and put them on the shelves, they have worked out what discount they can give to people and what money off vouchers they can give to someone - thats why its spend £50 before you can use your voucher.

Its already marked up to cover the discount they give to people - no matter what the goods are.

Hence why they are the most profitable store in the UK making billions. They tell you that you are taking money from them but they have just had £44 from you and the mark up would near that to over 110% because you may not buy what others are buying but your buying all the same so it works out.

I dont need people to agree with me as thats not what im writing this for - im telling you they have factored it into their pricing BEFORE you have bought it and then get a discount - so you shop there more. Is that so hard to understand? Or is this why they are the biggest and best retailer in the UK as their consumers dont understand this?

Moglex

geordieracer wrote: »

No you have missed the whole point. again like everyone else in this thread who does not understand who the big supermarkets work.

Ill go slow for you now and quickly as i need to go on holiday -

Before they even price up the goods and put them on the shelves, they have worked out what discount they can give to people and what money off vouchers they can give to someone - thats why its spend £50 before you can use your voucher.

Its already marked up to cover the discount they give to people - no matter what the goods are.

LOL, you really are one confused puppy.

By your logic shoplifting doesn't cost supermarkets anything because they have worked out how much they lose and factored that into the prices they charge. The second part of that is actually true, of course. It's your weird idea that because you know how much something is costing you it doesn't cost you anything that marks you out as a couple of sandwiches short of a picnic.

DCFC79

Zedicus wrote: »

I can understand why someone wouldn't find this topic interesting but what sort of a moron extends threads in which they have no interest by making pointless replies to them?

Some people really do have way too much time on their hands.

but who put you in charge, its got diddly squat to do with u or anyone else how much time i have on my hands, so what if i made teh post at just gone 6pm on a friday for all you know i could have been working, till 5

shaymenRup

geordieracer wrote: »

No you have missed the whole point. again like everyone else in this thread who does not understand who the big supermarkets work.

Ill go slow for you now and quickly as i need to go on holiday -

Before they even price up the goods and put them on the shelves, they have worked out what discount they can give to people and what money off vouchers they can give to someone - thats why its spend £50 before you can use your voucher.

Its already marked up to cover the discount they give to people - no matter what the goods are.

Hence why they are the most profitable store in the UK making billions. They tell you that you are taking money from them but they have just had £44 from you and the mark up would near that to over 110% because you may not buy what others are buying but your buying all the same so it works out.

I dont need people to agree with me as thats not what im writing this for - im telling you they have factored it into their pricing BEFORE you have bought it and then get a discount - so you shop there more. Is that so hard to understand? Or is this why they are the biggest and best retailer in the UK as their consumers dont understand this?

Sorry Geordieracer you are wrong.

Have you ever heard of lossleaders? These are items stores sell at a loss to get people in their stores. The sell them at a loss in the hope that customers see the offer come into the store , but then buy other items (which the store earn profit on).

Till spits/ vouchers are the same. They encourage people to visit the store more often, increase their spending or both.

The vouchers are short term loss for long term gain. Even if a customer visits their store anyway with no other choice in the area. The psychology is that if they can get a customer to visit more often (short expiry dates on vouchers), spend more (pay £50 get £5 off) then ultimately they will get the customer into a routine of visiting more often and spending more money. Recent vouchers I've been getting have gradually increased. Save £4 off £40 upto the latest save £9 off £90. However the saving value to me 10% has remained the same, the profit to Tesco however has increased. If we suggest they make 50% profit. They made £16 with the £40 voucher but £36 profit with the £90 voucher.

Fortunately I have choice and regularly change my shopping between Asda, Sainsburys and Tesco. Loyalty at supermarkets is not properly rewarded.

ProdigalScouser

shaymenRup wrote: »

Have you ever heard of lossleaders? These are items stores sell at a loss to get people in their stores. The sell them at a loss in the hope that customers see the offer come into the store , but then buy other items (which the store earn profit on).

I was going to mention loss-leaders as well. A lot of essentials, like bread and milk are actually sold at a loss, whereas some goods have a massive markup on - electronics being a good example.

No mattter what you say about factoring them into mark-ups (which seems to assume that the markup on all goods is the same), a £6 voucher is a £6 loss for Tesco. Howvere, if they give you a "£6 off £60 shop" voucher, they are saying they would much rather they took a £6 hit on your shop than you spent £6 elsewhere - which is the sole reason for giving these vouchers out.

Also, Tesco have no idea if you are going to use these or not, so can't factor it in to their prices. And, to throw another spanner in the geordieracer works - they will also accept vouchers from other supermarkets which, yet again, is a "loss" for them. When I use my £4 Sainsbury's voucher in Tesco, Tesco are getting £4 less for what I'm taking away than if I hadn't used it, but are still making a good-sized proofit on the rest of my shop.

the too long, didn't read version: geordieracer is wrong on this.