Tesco Petrol stations...not so cheap anymore??

Crabman

Two Tesco Superstores in our area both charge 96.9 for unleaded since the 5p per litre promotion started. Assuming one in six shoppers gets the 5p voucher, they still recoup the losses on the other five who don't. Yet in reality I suspect not even 1 in 6 shoppers uses one of these coupons which are only issued on a £50+ in-store spend (that's without considering the extra profit on an increased spend to get the voucher in the first place).

Most other stations are 95.9p including the ESSO which is part of Tesco Express. So I've started filling up at ESSO and (going slightly off topic now) I think I've seen an increase in mpg since using ESSO fuel. I don't have any hard figures but it seems to me the fuel lasts longer based on the fairly uniform driving I do each day.

firespire

stucky wrote: »

Is their fuel on Tesco price check?

I mean they ramble on about about how they are cheaper than a lot of Asdas prices but dont mention that Iceland is cheaper than Tesco.

You can check petrol prices on http://www.petrolprices.com/ and they include Supermarket prices.

Tesco claim they have more lower prices that another supermarket rather than claim they are cheaper, they can easily stick hundreds of items down by 1p before they get a someone to to quickly get price comparison data before the other supermarket has time to price match but also the fewer lower prices in the other supermarket could be higher reductions so the other supermarket therefore is cheaper.

Iceland near me is usually more expensive than the supermarkets brand for brand (+ fruit & veg) and it always seems to work out cheaper going to the Tesco Metro next door (which mine has the same prices as the big Tesco Superstores). I find my Iceland is more interested in round up the prices up to nice pretty figures than offering great prices - like something £1.28 in Tesco might be £1.50 in my Iceland and they make it hilighted with a larger yellow shelf label like this is a great offer when it isn't. I have never bought an Iceland branded product so these might be cheaper, the only one I have seen is £1 for 4 pints of Iceland milk that is cheaper than the equivelent price at the supermarket if you don't want to buy 2 for £2 that ASDA and Tesco seem to do but I don't know if Iceland own brand stuff is any good. If they have an offer like 2 Carrs Water biscuits for £1 usually works out cheaper at Iceland if the big Supermarkets doesn't have a offer on the same product but that goes without saying if any chain has a multibuy offer and the other one doesn't.

LittleVoice

fudgeukraine wrote: »

. . . - Undercutting is perfectly legal in a market. Have you heard of the term 'cash cow' whereby companies sell products for below their market value in order to get people 'in the door'.

Off topic I know but what you describe is a "loss leader" not a "cash cow".

A cash cow is a business/business unit/product which generates a continuing flow of cash with little effort being required now. For instance a well-established brand which has repeated sales with no significant advertising and having recouped its development costs can be a cash cow.

fudgeukraine

oops, my bad!