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Pricing too high?

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I read when the proverbial hit the fan with Tesco and they had to bring in a new board and the new board found 5 private jets sitting about. I read the same with Lehmen Brothers. I believe a company becomes so big and prosperous that the bosses lose their heads and become hedonistic despots. That's what happened to fred Goodwin, he even installed a tunnel under the dual carriageway so he didn't need to use the same road when he went across to the airport to access his private jet. Talking of airports , I have an airport run in the middle of the night so bed wins I'm afraid. 

 
An article from the BBC in May this year. 

https://www.google.co.uk/amp/s/www.bbc.co.uk/news/amp/business-43979167

In it is says that the big supermarkets have basically a national grocery pricing policy. There will be discrepancies in rural areas and where there isn't other stores to compete against. 


(The CC considered ordering the bigger supermarkets with the most market power to stop this and stick to national prices, but eventually decided against it)

The above was from the bbc news post. Its not mandatory for supermarkets to have national prices. That post was last May so maybe what we are witnessing is supermarket managers quietly adjusting some prices. Morrison's milk & bread was £1.50 each till Aldi opened up across the road from it. Morrison's customers and workers went across the road to buy the same bread & milk each day from Aldi which was £1 each. Morrison's automatically cut their bread & milk to same price or it didn't sell much. What is the two things that most people buy from a supermarket? Bread & Milk which meant they didn't even go into Morrison's when they needed it. The Germans aren't daft when it comes to under standing human behavior, unless in a war situation.

 
(The CC considered ordering the bigger supermarkets with the most market power to stop this and stick to national prices, but eventually decided against it)

The above was from the bbc news post. Its not mandatory for supermarkets to have national prices. That post was last May so maybe what we are witnessing is supermarket managers quietly adjusting some prices. Morrison's milk & bread was £1.50 each till Aldi opened up across the road from it. Morrison's customers and workers went across the road to buy the same bread & milk each day from Aldi which was £1 each. Morrison's automatically cut their bread & milk to same price or it didn't sell much. What is the two things that most people buy from a supermarket? Bread & Milk which meant they didn't even go into Morrison's when they needed it. The Germans aren't daft when it comes to under standing human behavior, unless in a war situation.






Exactley as the quotes i put I put up its regional to a greater degree when we visit friends in Newcastle the majority of items are cheaper than at home and that’s not special offers it’s the majority of stuff some might only be a few pence cheaper but some items are considerably cheaper , we had a Lidl open up about 3 years ago and surprise suprise both tesco and Sainsbury’s and the Co-op all reduced there prices to be more competitive 

 
But a lot of the above is covered by the fact that they now have competition. As I've said in high density populations where there are numerous Supermarkets the price country wide is comparable. At the end of the day if you're spending £20 a week extra on your food, £150 a week extra on housing, the fact you can make £100 a day more, more than compensates, unless you're @Pjjand can make 3 times as much ?

 
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What we have just uncovered is the racket the big supermarkets were running. If it wasn't for Lidle & Aldi then we would all be paying the same prices and the supermarkets profits would be higher. Roll on Amazon, then it will be squeaky bum time for the supermarkets.

 
It seems like theirs two different kinds of business arguing here. Ones a sole trader with a small business, low overheads etc and the others a much bigger scale business with massive vat bills, overheads,wages etc. One charges £6/7 and the other charges £15. Worlds apart in price terms but once you strip everything back to the actual profit off them prices there won’t be much difference at all. The only difference is that with the sole trader there is a cap at which you can earn at massive profit to turn over ratios whilst for the bigger company’s the skys limit once they are up and running. It all depends on which way you wanna go.


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