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jediwookie
Average Member
United Kingdom
453 Posts |
 Posted - 11 Jan 2011 : 10:47:19
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Hi Guys,
Just thought i would bring to your attention a few baby products in tesco that have had there price increased that coincided with the VAT rise even though they should be VAT exempt.
Looks like Aptamil products have gone up in price by as much as 16% in some cases.
I don't know about the other brands as we don't purchase them but we do purchase some baby food in the little jars and they have also increased in price.
I have contacted tesco asking why this is and why it coincided with the VAT rise as every other supermarket has them at the pre VAT rise price.
I have read online that tesco are renowned for pumping up prices on some products to see customer reaction if item sales drop or complaints come in they reduce the price back down if not they keep it up!
I don't know how true this is but its not a very palatable way of doing business IMO. |
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mb1
Advanced Member
United Kingdom
2139 Posts |
Posted - 11 Jan 2011 : 10:53:54
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| It is completely unpalatable, but this price pumping is something that all the big supermarkets do. It is quite amazing to pay close attention to some prices and watch them rise and sometimes fall seemingly at random during the year! |
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Hillsider
Average Member
United Kingdom
191 Posts |
Posted - 11 Jan 2011 : 11:18:00
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We noticed this the other day - if it helps, prices have remained the same at Sainsburys, so we are picking our baby milk up from there at the mo.
The prices have gone up online as well, so it does look like 'price-pumping'. |
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Warewolf
Advanced Member
United Kingdom
1453 Posts |
Posted - 11 Jan 2011 : 11:29:12
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| Not just a Tesco issue!! |
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Moulder
Senior Member
United Kingdom
783 Posts |
Posted - 11 Jan 2011 : 12:38:13
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quote:
Originally posted by Warewolf
Not just a Tesco issue!!
Indeed it is not!
Most retailers are at it. Sadly - so are the pubs.
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jediwookie
Average Member
United Kingdom
453 Posts |
Posted - 11 Jan 2011 : 13:12:00
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quote:
Originally posted by Hillsider
We noticed this the other day - if it helps, prices have remained the same at Sainsburys, so we are picking our baby milk up from there at the mo.
The prices have gone up online as well, so it does look like 'price-pumping'.
Yes Hillsider this is where we are going now.
I don't know what's more annoying the fact they do this price pumping or the fact they did it when the VAT went up seeming like they were trying to hide it either way just shocking behaviour and unjustifiable 16% rise on the cartons alone!!!  |
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Scottman
Advanced Member
United Kingdom
1759 Posts |
Posted - 11 Jan 2011 : 16:36:13
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This is so much a 'tactic' of retail operators I am surprised it has not become accepted as 'normal business'. You can see it happening at the petrol pumps and, classically, with gas and electricity suppliers and insurance providers. Stay with any of these people for more than 12 months and they start to boil you up, very slowly.
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Pat-H
WoLFer
United Kingdom
2404 Posts |
Posted - 11 Jan 2011 : 18:52:39
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This is just business isn't it?
The illusion is that they provide a service but the primary objective is of maximising profit.
To grow profit you must charge more while driving your costs down.
Companies like Tesco aren't in it for the good of society only for the good of shareholders.
This is the way it is.
Consumers need to constantly seek the best deal from the supplier that undercuts for competitive edge, assuming cartel type practices aren't in operation.
We just switched house insurance for half what our renewal quote was.
Our original insurers said they would under cut our newer price to retain the business but strangely seemed unable to do anything before we had a better price.
One lost customer not that they will care I imagine.
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IGS
WoLFer
736 Posts |
Posted - 12 Jan 2011 : 00:50:05
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| If you want to find out how much extra you should have paid then divide the old price by 117.5 and then multiply by 120. However it does not work like that because everything else increases and by the time it gets down to the consumer prices have had to go up considerately. |
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KateG28
Average Member
194 Posts |
Posted - 12 Jan 2011 : 08:51:41
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quote:
Originally posted by Pat-H
This is just business isn't it?
The illusion is that they provide a service but the primary objective is of maximising profit.
To grow profit you must charge more while driving your costs down.
Companies like Tesco aren't in it for the good of society only for the good of shareholders.
This is the way it is.
Consumers need to constantly seek the best deal from the supplier that undercuts for competitive edge, assuming cartel type practices aren't in operation.
We just switched house insurance for half what our renewal quote was.
Our original insurers said they would under cut our newer price to retain the business but strangely seemed unable to do anything before we had a better price.
One lost customer not that they will care I imagine.
This is very true. My OH runs a retail business and he has to decide whether to increase his prices or absorb the hike in VAT. What he often does is take the opportunity to change his prices as well (inflation and seeing if he can up his profits). Note that to change his prices costs him time and money (changing the price board, reprogramming the till etc) so he tends to do it all at once.
He is not working a 70 hour week as a charity. He pitches his prices at the highest he can while still increasing his customer base. (running his business using price, quality and service).
Explain to me why any of you would not do this if you were running a business?
If the prices are not acceptable, go elsewhere, they can then readjust or lose the business. Tescos can only bully us if we let them.
Besides won't the new Asda help with competition
(runs away and hides  ) |
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mb1
Advanced Member
United Kingdom
2139 Posts |
Posted - 12 Jan 2011 : 12:22:52
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| You're completely right Kate G28, ASDA will bring competition. It'll give us two places to go and get ripped off to fund directors bonuses and shareholder greed! |
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Pat-H
WoLFer
United Kingdom
2404 Posts |
Posted - 12 Jan 2011 : 14:22:33
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quote:
Originally posted by mb1
You're completely right Kate G28, ASDA will bring competition. It'll give us two places to go and get ripped off to fund directors bonuses and shareholder greed!
I agree that the competition is unlikely to be of much use to shoppers the clever shifting of prices at each store will result in shoppers haveing to work at getting the best deal and that take stime and effort. Ultimatley the big stores know not to start a price war and are happy to each have a nice slice of the shoppers spending cake. As long as they can kill off the smaller traders they reap the returns in years to come.
Directors bonuses much like bankers and others are part of the capitalist system we so love in england. As is the shareholder profit sharing.
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mb1
Advanced Member
United Kingdom
2139 Posts |
Posted - 12 Jan 2011 : 14:26:13
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| Just have to get my little anti-capitalist rants out of my system once in a while. I still hanker after the days when I was young and daft, and thought that the mass of the people would be interested in building a business model based on cooperatives to provide for the public good. [Sighs] |
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Scottman
Advanced Member
United Kingdom
1759 Posts |
Posted - 12 Jan 2011 : 14:36:38
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| I shall enjoy making myself somewhat unpopular by pointing out that both Tesco and Asda have market leading share option schemes their staff benefit from, and these stocks form a significant component of most pension schemes, which some of us probably hope to benefit from at a point in the future. |
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KateG28
Average Member
194 Posts |
Posted - 12 Jan 2011 : 14:40:25
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You all know that the Asda comment was tongue in cheek
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jediwookie
Average Member
United Kingdom
453 Posts |
Posted - 12 Jan 2011 : 15:09:09
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quote:
Originally posted by KateG28
quote:
Originally posted by Pat-H
This is just business isn't it?
The illusion is that they provide a service but the primary objective is of maximising profit.
To grow profit you must charge more while driving your costs down.
Companies like Tesco aren't in it for the good of society only for the good of shareholders.
This is the way it is.
Consumers need to constantly seek the best deal from the supplier that undercuts for competitive edge, assuming cartel type practices aren't in operation.
We just switched house insurance for half what our renewal quote was.
Our original insurers said they would under cut our newer price to retain the business but strangely seemed unable to do anything before we had a better price.
One lost customer not that they will care I imagine.
This is very true. My OH runs a retail business and he has to decide whether to increase his prices or absorb the hike in VAT. What he often does is take the opportunity to change his prices as well (inflation and seeing if he can up his profits). Note that to change his prices costs him time and money (changing the price board, reprogramming the till etc) so he tends to do it all at once.
He is not working a 70 hour week as a charity. He pitches his prices at the highest he can while still increasing his customer base. (running his business using price, quality and service).
Explain to me why any of you would not do this if you were running a business?
If the prices are not acceptable, go elsewhere, they can then readjust or lose the business. Tescos can only bully us if we let them.
Besides won't the new Asda help with competition
(runs away and hides )
I understand maximising profits but what got my goat was they try and hide it with the VAT rise this is just treating your customers as fools and therefore poor service IMO (although i find supermarkets generally poor service).
As for quality you can choose the level of quality in a supermarket as they stock ranges.
Therefore the only tool they really have is price so it needs to be competitive, so 16% increase on a single product when your competitors have held prices is pretty stupid IMO.
So now those that cant travel out of town and have to shop at Ware tesco are now being fleeced if they buy these products where as people like myself are now shopping with a competitor out of Ware town and therefore taking business out of Ware as we no longer need to visit the high street shops as we visit the new shops after the supermarket in the new town. This is not ideal as we would like to support Ware town but with kids in tow stopping off parking in Ware is just too much for them and us easier and quicker to park once shop and return home.
So its not only detrimental to tesco if customers decide to go else where is detrimental to Ware town and local businesses
Therefore asda in this case I think would help as we could have tried there and visited the town in one trip. But lets not get back on asda for this thread that's been debated to death.
This is about tescos and there bad business practice. |
Edited by - jediwookie on 12 Jan 2011 15:11:09 |
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mb1
Advanced Member
United Kingdom
2139 Posts |
Posted - 12 Jan 2011 : 19:15:07
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| It wasn't just ASDA JediWookie, it was more "all supermarkets are evil" and pursue the same pricing policies. |
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mb1
Advanced Member
United Kingdom
2139 Posts |
Posted - 12 Jan 2011 : 20:22:39
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| And to take this thread well and truly off course, I am appalled, horrified and devastated that the Guardian has just put a story on its website that the factory which makes Jammy Dodgers is closing!!! Aaargh! |
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jediwookie
Average Member
United Kingdom
453 Posts |
Posted - 13 Jan 2011 : 09:45:48
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quote:
Originally posted by mb1
And to take this thread well and truly off course, I am appalled, horrified and devastated that the Guardian has just put a story on its website that the factory which makes Jammy Dodgers is closing!!! Aaargh!
NO WAY Really! My little girl is not going to be happy as she loves them! Mind you guess on the flip side means she will not be eating any more biscuits and don't like any others  |
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