Supermarket stealth pricing

RHYSDAD

uktim29 wrote: »

But if all your competition had such a small margin like Supermarket retail and had to changes their prices to avoid making a loss what would your customers do then?

The prices of supermarket products are communicated via shelf edge labels.

The profit margin is not, as you say, 4 -5% on all items across the range. Some things are sold at a loss whilst others have a margin in excess of 50% or higher. Supermarkets don't exist on 5% profit margins by any stretch of the imagination.

mpython

Switch to Aldi & lidl. My weekly bills dropped dramatically when I switched over properly before Xmas. When I occasionally pop into one of the 'big' supermarkets, i can't believe how expensive they are.

One of my bugbears is the big supermarkets meaningless taglines like "always lowering prices" or "helping you spend less" or "where good food costs less". Yeah, right, like they'd be happy if consumers spent less in their shops.

withabix

RHYSDAD wrote: »

The profit margin is not, as you say, 4 -5% on all items across the range. Some things are sold at a loss whilst others have a margin in excess of 50% or higher. Supermarkets don't exist on 5% profit margins by any stretch of the imagination.

Have you checked your facts?

http://www.bized.co.uk/compfact/ratios/ror12.htm

RHYSDAD

I have to say i don't understand that way of looking at it.
Could you explain in laymans please?

RHYSDAD

I stand corrected. I'm big enough to admit it. Still doesn't change the fact that they don't have the common courtesy of telling us, which was the original topic.

Brooker_Dave

RHYSDAD wrote: »

But it's not the display of prices is it, you twit. It's the RISE in prices. It appears by stealth, almost weekly. Thanks for your input but as my post was about the apparent disdain the supermarkets have by not telling you themselves, your post isn't welcome.

Commodity prices are rising.

Supermarkets have to raise their prices.

We don't live in a communist country.

withabix

Profit margins:

Tesco 5.72%
Morrisons 5.87%
Safeway 4.14%
Sainsbury 3.61%
Marks & Spencer 3.91%

RHYSDAD

Brooker_Dave wrote: »

Commodity prices are rising.

Supermarkets have to raise their prices.

We don't live in a communist country.

they could tell us though couldn't they? Is it not about manners or is it okay for companies to be so big as to not need to bother?

Brooker_Dave

RHYSDAD wrote: »

They DO raise prices by Stealth

They're hardly going to advertise price rises!

RHYSDAD

withabix wrote: »

Profit margins:

Tesco 5.72%
Morrisons 5.87%
Safeway 4.14%
Sainsbury 3.61%
Marks & Spencer 3.91%

Like i said, i stand corrected. Wasn't the topic though was it, so thanks for commenting on an entirely different issue.