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Rikkitic

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  #2692214 13-Apr-2021 18:49
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An awful lot of talk here about the interests of suppliers and measures to protect those. What I miss is the interests of consumers. Why is everything always about the former and rarely about the latter? If I buy something in the supermarket, I don't give a damn about any cosy arrangements regarding placement on the shelves or who sucks up most to the franchise owner. I care about price to me, and availability of the item I want. These threads always seem to bend to the commercial interests of the producer/manufacturer/importer/retailer. What really matters in all these cases is the consumer. If we don't spend the money, they don't get it.

 

 





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gzt

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  #2692228 13-Apr-2021 19:21
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sbiddle: Speaking to a few people still in the industry a few weeks ago I commented about the high prices of apples this year.

That's interesting. I would not expect fresh produce suppliers have much ability to set prices to recover costs. Years ago supermarkets bought a significant volume of fresh produce at auction. Has this changed?

antonknee
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  #2692238 13-Apr-2021 19:37
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Rikkitic:

 

An awful lot of talk here about the interests of suppliers and measures to protect those. What I miss is the interests of consumers. Why is everything always about the former and rarely about the latter? If I buy something in the supermarket, I don't give a damn about any cosy arrangements regarding placement on the shelves or who sucks up most to the franchise owner. I care about price to me, and availability of the item I want. These threads always seem to bend to the commercial interests of the producer/manufacturer/importer/retailer. What really matters in all these cases is the consumer. If we don't spend the money, they don't get it.

 

 

 

 

You’re right of course and I agree that sometimes what’s right for the consumer is left by the wayside. The argument can be made though that if the interests of suppliers and retailers are not also met then they simply won’t sell you the things you want/won’t be around to sell you the things you want. Our so called free market after all is supposedly formed where the interests of all these intersect. 




sbiddle
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  #2692239 13-Apr-2021 19:39
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gzt:
sbiddle: Speaking to a few people still in the industry a few weeks ago I commented about the high prices of apples this year.

That's interesting. I would not expect fresh produce suppliers have much ability to set prices to recover costs. Years ago supermarkets bought a significant volume of fresh produce at auction. Has this changed?

 

Auctions have not been the main method of selling produce for a long time now.. Auctions were something I loved when I was a produce buyer in the '90s!

 

 


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  #2692261 13-Apr-2021 20:26
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Inflation is another beast printing money in the USA for years has not caused rapid inflation. Current Economic theory regarding this is being challenged.

 

 

Traditional economic theory is that Governments tax to bring in money which is then used to fund spending.

 

 

 

MMT or Modern Monetary Theory says Governments should print as money money as it needs. What causes inflation is not the money but scarcity - or lack of supply - and this can be curbed through taxation.

 

 

 

Many sectors have a surplus of capacity - hence no inflation. However one sector stands out like a sore thumb - yep you guessed it - housing. And what do the Govt do? They are trying to curb demand through taxation.

 

 

 

Me - I think there's something to be said for MMT but I also think why we're not seeing rampant inflation is that people with extra money are saving/investing more because it's so much easier now (e.g. sharesies) and there's so many more options (NZX, ASX, USA, crypto, and the latest craze, NFTs). All these are sucking up a lot of surplus cash. Finally, there's expectations - if people think interest rates will go up, they will act like they will go up (i.e. demand a higher yield for long term bonds). If people think rates will stay low for longer then taht's what happens - a self fulfilling prophecy.

 

 

 

 

 

 

 

 


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  #2692263 13-Apr-2021 20:30
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Fred99:

 

The Warehouse / TWG is still hanging in there in a half-hearted way after pulling back from grand plans.  Can't say I've ever bought a "supermarket" item there myself, YMMV.

 

 

 

 

Their grocery range has expanded quite a bit of late and I find myself buying more and more. 

 

 

 

The Warehouse regular prices can be quite competitive even against the supermarket "specials"

 

 

 

e.g. 

 

https://www.thewarehouse.co.nz/p/watties-soup-for-one-creamy-pumpkin-300g/R930543.html

 

 

 

$1 normal price

 

 

 

vs

 

 

 

https://shop.countdown.co.nz/shop/productdetails?stockcode=89277&name=watties-soup-for-one-canned-soup-creamy-pumpkin

 

 

 

$2.50 normal price but $1.50 on special maybe

 

 

 

 


LostBoyNZ
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  #2692270 13-Apr-2021 20:42
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Rikkitic:

 

An awful lot of talk here about the interests of suppliers and measures to protect those. What I miss is the interests of consumers. Why is everything always about the former and rarely about the latter? If I buy something in the supermarket, I don't give a damn about any cosy arrangements regarding placement on the shelves or who sucks up most to the franchise owner. I care about price to me, and availability of the item I want. These threads always seem to bend to the commercial interests of the producer/manufacturer/importer/retailer. What really matters in all these cases is the consumer. If we don't spend the money, they don't get it.

 

 

I think in the case of availability, as someone wrote about here, sales numbers are put under the microscope every so often during buyer reviews. While something like Coke, Watties Baked Beans and Tip Top 2l Ice Cream just for three random examples are sure bets for selling well, the lesser selling products are the ones at risk. And it might just come down to less people in a certain neighbourhood are interested in x product, so it's given the axe there. Slow sellers I guess are risks in that they might not sell, and ordering small quantities or anything comes at a higher price and there's prices on admin, stocking etc.

 

I know for a fact that at a certain Warehouse store in a certain suburb of NZ, they had a serious conversation about clearing all books from that branch because the number of people who buy books in that area is very small. Ultimately they didn't, but the decision could have gone either way. And yes it would annoy the people who do buy books, but it all comes down to numbers.

 

Likewise with supermarkets, I know with Flybuys and One Card, Foodstuffs and Progressive can both put a lifetime value on customers (when you've provided your age, otherwise they can make a less accurate estimate) so they can easily work out how much they'd lose if you stop shopping there. This is a known figure to them. So "If we don't spend the money, they don't get it." is certainly reminded to them in the data they see at least. As someone else said, with some New World's, if you request a specific product, they may try to order it in for you. Like a particular New World in Christchurch I know will do that, and I know it's not done for profit on that item, but with the thought in mind that by going the extra mile you might shop there more often.

 

So, at least of my small knowledge of things, I know some supermarkets do have an interest in individual consumers. But the higher you go up the company structure etc, the less one individual matters and the more the numbers matter.

 

This is slightly off topic, but I still remember some shopping experiences overseas, back in my retail days. And I was surprised in certain electronic stores in some densely populated countries how hard it was to get hold of a sales person, and how little they cared (some stores only). And it's just a theory but I think for them there's no point (from a $ point of view) in providing good customer service, because they don't care if you come back or not, there's so many people that will either just shop there anyway, or always more people to replace shoppers who don't. To a certain degree I see that in K-Mart here, although it applied to more expensive stores in the places I saw overseas too.

 

In some ways I think, lack of competation aside (and the odd bagger who throws everything in), we've got a good standard of supermarkets in NZ. But it could always be better :)





Renting Virtual Reality gear New Zealand wide since 2013 - https://www.virtualrealityrental.co.nz/




Geektastic
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  #2692350 13-Apr-2021 21:54
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Rikkitic:

 

An awful lot of talk here about the interests of suppliers and measures to protect those. What I miss is the interests of consumers. Why is everything always about the former and rarely about the latter? If I buy something in the supermarket, I don't give a damn about any cosy arrangements regarding placement on the shelves or who sucks up most to the franchise owner. I care about price to me, and availability of the item I want. These threads always seem to bend to the commercial interests of the producer/manufacturer/importer/retailer. What really matters in all these cases is the consumer. If we don't spend the money, they don't get it.

 

 

 

 

 

 

We are in complete agreement! Consumers seem to be the least important thing in many businesses - supermarkets definitely included.






Geektastic
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  #2692352 13-Apr-2021 21:56
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Slightly OT but where have Kelloggs Frosties gone?

 

 

 

They have vanished (although I did find them in a supermarket in Twizel recently!) from all the supermarkets around here regardless of brand. It cannot be a health issue because they still stock heaps of other cereals with just as much sugar in, as well as aisles of sugar-laden pop and actual sugar etc.






Senecio
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  #2692354 13-Apr-2021 22:10
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Our company puts consumers front and centre of everything that we do. But the reality is that we can’t get our products in the hands of our consumers without our retail partners. So we have to play the game as best we can.

elpenguino
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  #2692361 13-Apr-2021 22:51
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Senecio: Our company puts consumers front and centre of everything that we do. But the reality is that we can’t get our products in the hands of our consumers without our retail partners. So we have to play the game as best we can.

 

Ah, well, have you heard of this thing called the internet?

 

But seriously, that kind of thinking has to stop. Nothing has to be the way it is, unless you want it to be.

 

What about selling directly on subscription?





Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21


antonknee
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  #2692620 14-Apr-2021 12:59
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elpenguino:

 

Senecio: Our company puts consumers front and centre of everything that we do. But the reality is that we can’t get our products in the hands of our consumers without our retail partners. So we have to play the game as best we can.

 

Ah, well, have you heard of this thing called the internet?

 

But seriously, that kind of thinking has to stop. Nothing has to be the way it is, unless you want it to be.

 

What about selling directly on subscription?

 

 

I couldn't think of anything worse as a consumer - not everything needs to be a bloody subscription quite frankly. And online shopping is not always convenient IMO (and I say this even though my entire job is online shopping).

 

Sometimes you really do just want to get a simple item from the shop you're already at/going to, and I think this is even more the case with household items that you might buy from say the supermarket or somewhere like a Bunnings/M10/The Warehouse/Kmart. 


Oblivian
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  #2692641 14-Apr-2021 13:21
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antonknee:

 

I couldn't think of anything worse as a consumer - not everything needs to be a bloody subscription quite frankly. And online shopping is not always convenient IMO (and I say this even though my entire job is online shopping).

 

 

Progressive/Countdown just launched subscription delivery https://shop.countdown.co.nz/deliverysubscription/plans 


Oblivian
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  #2692642 14-Apr-2021 13:21
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antonknee:

 

I couldn't think of anything worse as a consumer - not everything needs to be a bloody subscription quite frankly. And online shopping is not always convenient IMO (and I say this even though my entire job is online shopping).

 

 

Progressive/Countdown just launched subscription delivery https://shop.countdown.co.nz/deliverysubscription/plans 


KrazyKid
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  #2692643 14-Apr-2021 13:21
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elpenguino:

 

Senecio: Our company puts consumers front and centre of everything that we do. But the reality is that we can’t get our products in the hands of our consumers without our retail partners. So we have to play the game as best we can.

 

Ah, well, have you heard of this thing called the internet?

 

But seriously, that kind of thinking has to stop. Nothing has to be the way it is, unless you want it to be.

 

What about selling directly on subscription?

 

 

Could be a new model for the super markets - buy your groceries on subscription :)

 

Saying that this is what my food bag & hello fresh do to some extent already.


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