Asda's Extortionate Price Rises

spike7451

Stephen_Leak wrote: »

Just wait for the product to go back down again, so that they can legally say that it's a price reduction.

For example, ASDA SmartPrice 15 eggs went up from £1.25 to £1.58 for a week and are now back down to £1.25, but with the £1.58 crossed out.

Watch last weeks Watchdog,Asda were putting the price of their own brand curry sauce up to £1.18 for around a week then dropped the price down to a pound,claiming it was the lowest ever price...Apparently the price should stay at the higher end for 24 weeks before they can drop it & claim what they did...
I rarely use Asda apart from their basics range,which is better & cheaper than Tesco's for most of the items I buy,like their smart price coffee for 47p,which is good for work! (drink filter coffee at home)

VT82

It seems like there might be a bit of over-thinking going on.

They have decided to put the price up because of inflation, which is fair enough. It's a branded product so Asda can't negotiate with Cadbury to make the size smaller so they can keep the price the same (a la Poundland).

So they have been making a smaller and smaller profit on it while they have held the price at 99p (to keep it under the magical £1). Now they have decided they aren't going to bother doing that, they are going to put the price up to a price which generates their intended margin on it. This happens to be £1.18. The alternative would be to put it up or down by a penny every few weeks, i.e. pointless, and likely to bring about even more venting.

Unlikely to be anything more sinister than that.

s_b

VT82 wrote: »

It seems like there might be a bit of over-thinking going on.



Unlikely to be anything more sinister than that.

its an 18% increase in one go
are you seriously suggesting this is reasonable?
maybe the figures are too complicated for you?

Kite2010

Shop puts up price shocker!

Price of the raw goods has increased, fuel has increased, therefore the price of goods also increase.

VoucherMan

passatrider wrote: »

Now this has been 99p ever since the packs were reduced to twin packs

How long is this? 6 months? 5 years?

s_b wrote: »

its an 18% increase in one go
are you seriously suggesting this is reasonable?
maybe the figures are too complicated for you?

As others have suggested the old price may no longer be sustainable so they've put it up to a price they may hope to keep it at for some time. Or as others have suggested they may be planning a price drop (that's my guess for the most likely)

But assuming the price is here to stay, and for the sake of argument, the price has been 99p for the last two years - would you be happier if they'd put the price up in smaller instalments?

So 18 months ago from 99p to £1.03.
6 months later up to £1.08
Another 6 months on, another 5% - up to £1.13
And finally up to £1.18

If you bought one pack a week the above example would have cost you about £7 more over two years, but you may not have noticed. After all what's a 5% increase these days? And in 6 months time when the next rise happened you may have forgotten about the last one.

Personally I'd prefer the prices to stay low for as long as possible even if it means a hike like this.

eschaton

VoucherMan has it spot on.

Anyone who doesn't understand retail will think rip-off, con scam or the latest buzz word.

mttylad

Even though we have a 10% off card because er indoors works there, she still shops at Aldi... say no more.

The_BAMFster

Kite2010 wrote: »

Shop puts up price shocker!

Price of the raw goods has increased, fuel has increased, therefore the price of goods also increase.

Though this may be factual, I doubt very much many (If indeed any) people have had an 18% increase in their pay packets?

My pay has been frozen for the last three years now, but as stated, fuel and other utilities continue to increase. I've nothing against price hikes, as businesses are there to make as much money as possible, but would much prefer them to be proportionate to the current economical circumstances.

VT82

s_b wrote: »

its an 18% increase in one go
are you seriously suggesting this is reasonable?
maybe the figures are too complicated for you?

I have a degree in maths, statistics and economics, and work in the Treasury department of a major financial institution.

Wind your neck back in.

Derivative

The above post made me giggle a little bit.
"Sit down." comes to mind.

Look, we're talking about a brand name luxury item.

Not just an unnecessary dessert, but a branded one at that.

"Unreasonable" doesn't really come into it. You can perhaps call price rises on value essential items unreasonable - but on something entirely optional? It's a treat! Something your Grandma would have had a couple times a month if that.

Just don't buy it. Job done.

I have a right to charge whatever the hell I like for the stuff I sell. So do you, and we both have freedom of choice when it comes to purchasing decisions.