What can we do about supermarket prices?

elljay

Yes, sorry you're absolutely right - I should've called it 'What can we do about the power of supermarkets?' or something else. Anyway the ensuing discussion has been really interesting, thanks to all for participating. It's given me lots more information about something I was only partly aware of.

L

andybk

uktim29 wrote: »

Well believe me there is no 200/300% margin in supermarket retail. Operating costs/Wholesale prices are not figures that can be fiddled by an accountant. At the end of the day this still doesn't get away from the fact that cheap food prices, therefore the amount Farmers will earn are driven by consumer demand.

It's the consumers fault, not the supermarkets. Just look at the title of this thread, they're at it again!

no ,not 200 - 300% margin , gross cost , and looking at how wealthy tescos is, are you trying to tell me they do that on 5% ? no matter how big a concern they have
They are buying land like its going out of fashion , paying for all sorts of road improvements , sponsoring all sorts of causes , seems they are just trying to get rid of the cash so they dont have to pay tax on it instead of paying their producers and suppliers a reasonable price .
well i hope the government keep the value of the £ up as the imports we now rely on will cost everyone in the end .

uktim29

They're not buying land like it's going out of fashion, just where theres demand for a new supermarket(s). Local governments put pressure on business to improve the road system around any new supermarket developments. Their spend on these things is small compared to the overall cost of running their business.

It still goes back to the same thing though. Who fault is it that food prices are so low, the consumers.

andybk

uktim29 wrote: »

They're not buying land like it's going out of fashion, just where theres demand for a new supermarket. :rotfl: :rotfl: :rotfl: Local governments put pressure on business to improve the road system around any new supermarket developments. Their spend on these things is small compared to the overall cost of running their business.

It still goes back to the same thing though. Who fault is it that food prices are so low, the consumers.

and when is there any other message on their adverts other than we are the cheapest ? when in reality they are not , just on a few selected lines on a particular day . dont get me wrong the supermarkets do a good job , its just with the size and power they have and can weild when needed , they ougt to look after their suppliers better , they know our costs inside out so why insist on buying below that level , govenments change , and currencys fluctuate , we need a constant domestic food supply , its the only thing important to everyone of us , if things change as they will sooner or later , you will find out .
when farmers go and find they are better paid nearly anywhere else , they wont come back , and even those that do ,will need 5 years and the labour to get land / livestock back into production ,everyone will suffer this constant drive for cheap food .

uktim29

andybk wrote: »

everyone will suffer this constant drive for cheap food .

Lead by the consumer. This has been my argument all along. So whos faults that then!!!

andybk

uktim29 wrote: »

Lead by the consumer. This has been my argument all along. So whos faults that then!!!

the consumer has no idea , its too cheap ,30% of all food is thrown away ,(buy one get one free , then it ends up in the bin !) it has no value and it tastes like c**p
.If it was a bit dearer we would be more careful in what we buy .Hardly very "green" to grow a crop ,package it , transport it , then throw it away , and have council lorries running around making "green waste ". What a waste of time and fuel ,I would sooner pay a bit more , have a quality product i enjoyed eating , and threw nothing away .
Sooner or later Gordon Brown will cotton on to this (same as the bags ) and he will be taxing the waste .

unrich

Inflation happens. Fuel costs will only keep on going up. Eventually farmers will realize that they can easily undercut large supermarkets by selling direct to the public. A cauli that travels 2 miles will be cheaper, fresher and healthier than one that has done a 500 mile round trip via a distribution centre.

If the only place you shop is a supermarket then the supermarket is the only place that will buy produce from farmers. A vertical monopoly. If the supermarket decides you can't have something they don't buy it. If there's no profit from it, they drop it. The farmer has only one outlet and has to accept the price offered. The customer has only one point of purchase and has to accept the price the are invited to pay.

Buy your stuff elsewhere. The message will get through. Competition on the high street will lead to lower prices. Competition to get the best produce will lead to the producer getting a fair price. Its a free market economy.

And whilst one person doesn't make all that much difference it is still a difference. My new year's resolution was not to use plastic bags from shops. I have managed to cut down my use by 90%. I see loads of people with reusable bags now. I influence people as they can see its no trouble.

Its not everybody but I'm doing something and I bet by the end of the year you'll see a bigger drop in plastic bag use than 1%.

I bet we'll see sustained higher demand for free range and organic chicken by the end of the year too. (individuals deciding to do something)

You could join the Co-op for £1 and take a share of the profits and have a say in how its run.

One person can make a difference you just have to get off your apathetic ar$3 and do something.

chuckles1066

unrich wrote: »

A cauli that travels 2 miles will be cheaper, fresher and healthier than one that has done a 500 mile round trip via a distribution centre.

So why does a cauliflower at my local garden centre (grown on-site and no distribution/packaging costs) cost me more than one at my local Asda that's been flown in from Uruguay?

Someone's taking the mickey and it ain't Asda..............

uktim29

chuckles1066 wrote: »

So why does a cauliflower at my local garden centre (grown on-site and no distribution/packaging costs) cost me more than one at my local Asda that's been flown in from Uruguay?

Someone's taking the mickey and it ain't Asda..............

Exactly, it's a myth Farm shops/Butchers etc are cheaper. It's one of those herd mentality things that everyone says it because everyone else says it. In reality it's not true.

I use them all the time as although for good meat it's often double the price I like the quality/taste. Most people prefere the cheaper option though. But the funny thing is people who want the cheapest option, go to a supermarket and buy it. Then 2 minutes later they'll moan on an internet forum about the price and imagine in their heads that they could have got it cheaper going to a Butchers/Farm shop! Or is that part of doing the herd thing so they can join into a group of people who do exactly the same and then complain about exactly the same thing.

So why don't they just go there in the first place then?

But if they do that they'll soon end up knowing that in actual fact it isn't cheaper.

andyrules

Well to get back to the op - supermarkets CAN help the elderly and other lone people by offering more small packs of products. Not everyone is buying for a family, but of course that is the supermarket's ideal target customer.