Be cautious with value lines

Haffiana

Middy wrote: »

Many people don't realise that supermarkets do not make profit on their value ranges. If production, raw ingredient and feed (for animal related items like eggs and meat) prices go up, then the prices of the value ranges go up.

Price sensitive is the term.

Good lord, whoever told you that?! Of course they make a profit - they cost less to buy because the quality is not fixed like an own-label or branded item. Value items use up cheaper ingredients or they are repackaged end of production runs or sourced from different factories - it varies. Because it varies it is badged as a value item. Supermarkets buy them for less and sell them for less. They still make a handsome profit. Yes of course raw ingredient prices go up, but that is costed in, and if necessary the value item will also go up in price same as everything else.

Edwardia

"Those on tight budget who may be buying value can'tt afford to trade up so accept the increase other groups ie the ones who buy premium/organic have more choices."

People buying organic have more choices ??? Absolutely not.

Aldi has an organic range in USA and Germany but not here. Lidl. ASDA and Morrisons all claim to have organic ranges but if you look for them you might find carrots, mushrooms, milk, farfalle and tinned tomatoes - after visiting all three supermarkets.

Iceland and Farmfoods don't do organic food, nor do Poundland and 99p Stores. Not seen organic on Home Bargains' website and only a tiny amount on Approved Food and ROSSPA - like maybe three products.

In France there are organic supermarkets, Germany consumes more organic food than any other European country. In USA even Wal-Mart and Target sell organic food.

Here, you're seen as a toff for not wanting to consume chemicals and if you can find organic food in supermarkets it's often overpriced and bad quality.

I have diabetes and blood tests I have to have every 3 months show me that eating a low carb organic diet is improving my health. Eating carby chemical laden pesticide sprayed food would make me sicker.

Many people eating value lines and YS stuff are eating it to save money so they can go on vacation, do the lottery, have SKY etc. Not saying all by any means, but some.

My choice is eat good food or get sicker.

Premium food isn't necessarily healthier or even tastier than value food.

The bottom line it seems to me, is that more people should be complaining about the total carp supermarkets and discount stores sell and the way prices go up and down like blooming elevators.

tessie_bear

hi edwardia...its hit and miss but i have seen bits of organic food in home bargains...tinned toms/stock cubes/rice spring to mind but its one offs so not much use planning a whole diet but might be worth a look if u are passing

A._Badger

What has happened during the past 12 months is that the supermarkets have, cynically, compressed prices - meaning that they have dramatically narrowed the gap between 'cheap' own brand goods and premium brands.

They have successfully diverted most customers' attention from this by promoting 'price match' and similar deals - claiming to compete with one another on branded goods. But they have done it while hoisting the price of 'value' ranges.

The end result is that we are all paying more for our shopping and the poorer (or most cost conscious) are paying even more, as the 'cheap' products they tended to buy have risen by a far greater proportion.

Edwardia

Thanks tessie bear !

A.badger, I'm always mystified as to why these brand matching things aren't considered price fixing. ASDA, Waitrose and Budgens all match Tesco prices for brands. It basically gives Tesco carte blanche to raise them to what they want. Only Ocado beats them (the one time it didn't I got a voucher).

maman

geordie_joe wrote: »

Yes but the increase in price doesn't reflect the increase in raw materials.

Price sensitive is not the term, too many people in this country are willing to believe the lame excuses for price rises than admit they are being ripped off.

I couldn't agree more geordie joe. IMO supermarkets are just taking advantage of the recession to get away with whatever they can while maintaining (or improving if at all possible) their profits. It really reminds me of when retailers took advantage of decimalisation back in the 70s. As Osborne loves to tell us 'We're all in this together!' :rotfl::rotfl:

Today I only needed a small shop and as I'd not been well I decided to do it all in Sainsbury's instead of shopping around as I'd normally do. Just two examples: SS milk £1.29 for 4 pints, bread £1.50. I know that Iceland has the self same bread and probably the self same milk for £1 each so that's 79p ripped off on just two items. That's before I even think about comparing veg prices with Aldi. Fortunately, my ailments are temporary but it just shows how vulnerable people are who can't shop around....unless you're George Osborne of course, I've never seen him in Iceland!:rotfl:

stephen77

maman wrote: »

Today I only needed a small shop and as I'd not been well I decided to do it all in Sainsbury's instead of shopping around as I'd normally do. Just two examples: SS milk £1.29 for 4 pints, bread £1.50. I know that Iceland has the self same bread and probably the self same milk for £1 each so that's 79p ripped off on just two items. That's before I even think about comparing veg prices with Aldi. Fortunately, my ailments are temporary but it just shows how vulnerable people are who can't shop around....unless you're George Osborne of course, I've never seen him in Iceland!:rotfl:

Js do buy 2 * 4 pints of milk for £2.

How do you know the loaf is the same as Iceland and JS?
They may have little difference like shelf life even if similar loaf.
Eg iceland may add a extra day or two life on it. Thus you may get fresher loaf at JS even when nearer the UB. Thus JS have more instore wastage.
not been to Iceland for ages. I am not sure how many different loave options they have? JS do have lots, so you may a little more as they are trying to make more margin on the volume lines, while TTD etc may have a lower % margin.
Of course they could be the same, i am just trying to present reasons why things may look similar but not actually be the same price.

stephen77

Edwardia wrote: »

Thanks tessie bear !

A.badger, I'm always mystified as to why these brand matching things aren't considered price fixing. ASDA, Waitrose and Budgens all match Tesco prices for brands. ).

I guess price fixing involves discussing with your competitors the prices.
Price matching means you have to keep checking the competitors and doing your best not to be bettered.
The key is not directly ringing up the opposition to find out.

stephen77

Edwardia wrote: »

. It basically gives Tesco carte blanche to raise them to what they want. Only Ocado beats them (the one time it didn't I got a voucher).

M&S and waitrose normally hold the key to price rises.
JS want to be cheaper than waitrose and M&S. thus JS do not increase there price rise until Waitrose & M&S have.
Tesco, Morrison & asda do not want to cost more than JS. So they have to wait for JS to increase there prices.
Thats is top line summary of how it works.

The smaller retailers will vary depending on who they see as there main competitor.

Enterprise_1701C

I saw this with "value" grapes earlier in the year. Can't quite remember when, but was buying them regularly for 99p for a 500g pack. They then went up to £1.25 so I did not buy them, they then went up to £1.50, and last week they were £1.75. I think this was within the space of about 2 months.

I personally do not buy fruit and veg in any of the big 4 now, I have a Lidl and an Aldi just down the road and their fresh produce is far better anyway. Only ever go to a big supermarket for things I can't get in either of those two now.