Small Business Hoarding at a ALL TIME HIGH

I'm absolutely disgusted with the dodgy ways small businesses are doing to increase revenue, yet you see them cry every year stating they're running at a loss and need tax breaks. I say double-audit these dodgy pricks.

Recently, Coles had a special, $4 for a 4-Pack of Redbull. All the Redbull, V, and Energy Drink 'Drinkers' know, these mothers cost $3.00 retail and around $6.00+ in clubs/pubs.

Guess what? as I entered Coles, I saw an entire Family of 3 inbreds (Dad, Mother and Son) hauling 3 separate trolleys worth of Redbull boxes..to the point, one trolley was so overloaded, he couldnt push it over the dotted marks on floor for blind people before entering the escalator, the Trolly almost tipped

I walked past them hoping they left some for the average consumer, but no, the entire shelf was empty.

I walked out of Coles giving these apes a dirty eye, then noticed they've acquired some large Van to load up 3 massive trolleys worth, while the son was pushing the remaining boxes in his wagon, Liberty

No doubt they run a business, and now currently selling these for $3 each or more making a 200% profit

I dont know when these large retailers are going to put more scrutiny into the pig-hoarding because it's joke.

Not too far out of this dirty incident, I saw a similar grub do the same with Milk as they're $3 from Coles

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closed Comments

  • +97

    Except there's nothing wrong with doing this. Unless Woolworths or Coles places a cap on the amount then the person doing this is doing nothing wrong and are simply getting their stock at the lowest possible cost.

      • +16

        You should complain to Coles. Your example isn't analogous. Coles is not running a promo. If they have no objections to selling in any quantity, that's their prerogative.

      • +6

        Well that's not the same analogy, because those are freebies that normally cannot be resold, due to special packaging or simply are worthless.

        Digressing, if you had a problem with them you should've said something rather than keep quiet and going to OzB to make a post that they'll never read or know.

        Also 'small' businesses that run hospitality/resturaunts etc are some of the most profitable in Australia, the small businesses that are hurting and are complaining to the Government are manufacturing and retail ones, not really on the same level.

      • +4

        I agree with greenpossum, your example isn't analogous. Your example is a promotion where what you're getting is not really resellable.

        A lot of small restaurants use stuff bought from Woolworths or Safeway, e.g. cafes sometimes use Woolworths and Coles milk because it's a lot cheaper than what they can get elsewhere. That's completely fair and fine by me. If it's the cheapest place they can get it and there aren't any rules regarding that, then they win. It's a first in, best dressed situation.

        Perhaps another way of looking at it is if someone decided to stock up on their yearly supply of Red Bull when it's on sale. Nothing wrong with that either.

        This happens everywhere, what about those people who line up at Apple stores and then go on to sell what they bought at an inflated price?

      • Imagine a promotion is running with say Western Digital and they have some USB Sticks proto-types for free to pick up and I just went there with a massive santa bag and collected them all, how would the public react?

        I'm not sure how the public would react

        But I would bet the house on it that in an OzBargain post Brogen may be mentioned.

        • +7

          *Broden

    • +3

      Last time at WW there was someone buying bulk, staff removed all but 1 box of each and told them if they have a problem with it speak with the manager.

      They were quite rude and made a scene- the WW staff

      Most of the customers were of the same opinion as us, stop making a scene and let them buy what they want

    • -5

      nothing but any good store manger or staff manger will no to stop this sent them to place a order. As ex woolworth and Dicksmith staff member and manger i can tell you. this piss off many more customer then this one.

  • +20

    Every time there is a special that is not in stock, I ask for a rain check. If I'm with someone, I'll get them to do the same. I'll also use Coles/Woolworths with Click & Collect. I think everyone can be a winner out of the situation but you just need to use the tricks.

    I'm awaiting seeing "The Bars" stocked at my local milk bars. :)

  • +6

    My thoughts:

    1. I recall from an earlier post of mine that the stores can limit sales to 'retail quantities'
    2. however, in SA they cannot limit the quantities in this manner.
    3. seems you are mostly annoyed you didn't get in first
    4. just get a raincheck

    How many do you consider an 'acceptable' amount and who made you the hoarding police?
    Besides, if Coles is selling them at a price that is way below what stores can buy them for wholesale small stores would be stupid not to do this. In fact, I have heard that shops do this sometimes on Coke products when Colesworth sell below wholesale.

    • -4

      Yes aisa customer 40, 24 pack of cola.

  • +14

    Just get a raincheck from Coles, and buy them when they are back in stock?

    I think your anger is directed at the wrong people. The real issue here is that Coles can sell a product for cheaper than small business can buy it from the supplier. Their buying power means small business can't compete, and are driven out of business.

    • +10

      Coles operates a Business to Consumer model, they do not cater for businesses, else the shelves will be empty 24/7.

      Have you asked Coles if they agree with that and what they are going to do about it? Let us know.

    • +27

      Businesses operate under an ABN, an ABN provides you incentives that the average individual tax-payer doesnt get

      Bulk buy direct
      * I have an ABN, and I'm also a regular taxpayer with a PAYG wage. My ABN doesn't provide me with the buying power of a nation-wide supermarket such as Coles, so there is no way of bulk buying direct at those prices.

      Discounted freight/delivery
      * How exactly? "Oh, you have an ABN.. please disregard this 'common chump' price list, and here's the ABN price list that is cheaper." said no delivery company ever. An ABN doesn't give you discounts - negotiating with suppliers does… which ANY tax payer can do if they have the usage that the delivery company wants.

      Support
      * What support is that? Someone wipes my tears when my supplier doesnt have stock on hand and places me on back order like your red bull?

      Tax incentives
      * Not sure exactly what you think they get… but generally any tax deduction involves spending money. Something a business can't do if it is not profitable in the first place - which is why they'd be buying their stock cheaper at a supermarket.

        • +15

          Why are shopkeepers buying from Coles/Woolies if they get all these great benefits?

          You don't seem to know what you are talking about.

        • +2

          Coles sells milk for $1/litre. We all know this. However, the prices that each ABN holder will be different… a fabricated (but reasonable) scenario might be:

          The milk distributor can offer Coles prices of 90cents/litre because they buy 400,000 litres a week. Economies of scale on such volumes mean that the distributor still makes profit on selling it so cheap. Coles is happy to sell it for $1/litre and accept their 10c gross profit per sale.

          The same milk distributor might be able to offer a cafe prices of $1.30/litre because they buy 400 litres a week. The distributor cannot supply the cafe any cheaper despite 400 litres a week.

          The milk distributor doesnt deal with the public who buy 3litres/week because they are not resourced to handle retail customers. Thats why distributors dont deal with retail customers.

          So tell me, as our fictional cafe operator - why you would pay $1.30/litre for milk, when you could source it at $1/litre for the exact same product from a supermarket?

          In a week, thats $120 of profit you are literally pissing down the toilet a week.
          Thats $6,240 a year.

          Theres a lot you can do with $6k extra a year.

        • +8

          So what you're saying above, that an ABN holder (running a business) gets ZERO product incentives in terms of price, delivery, and therefore compared to an average Joe Blow they are both equal? Isnt this why us consumers have Coles/Woolies to rely on (in addition to the small grocer) whilst business procure their products from their suppliers??

          I don't think you understand the relationship between businesses and suppliers. This is a complete and utter load of crap.

          Running a Business such as a Cafe, Restaurant, etc allows you to bulk purchase items direct from suppliers. I cant get a contract with a supplier to provide me milk because I wouldn't be buying enough, plus how will they invoice me?

          Neither do a lot of businesses. I don't think you understand the notion of bulk. For many businesses, unless they are reselling (e.g. a milk bar or service station) won't actually go through enough perishables to be able to warrant ordering direct from supplier.

          Also, what do you mean by "how will they invoice me?". Anybody can get an ABN.

          You're just an obnoxious nerd, get the hell away from my post

          Hahahaaha, just because he's right and you know it

        • +2

          @frostman:
          and in the process inconvenience 100 other mums waiting for a restock

          oh ok I see now, best OP take a couple panadol and help them selves to this deal
          https://www.ozbargain.com.au/node/144661

        • +4

          @frostman:

          I hope you stop all cafe purchases. Also never enjoy another sausage sizzle fundraiser again - guess where they'd most likely source their snags, bread and soft drink cans?

          It is amazing the correlation between the use of the word 'grub' and individuals who don't understand what it takes to run a successful business… And it usually signifies working in a heavily unionised industry.

        • +5

          @frostman:

          ahh now I understand. Are you one of those mums that has the disease? The ENTITLEMENT DISEASE where you feel entitled to everything because you are a mum and get angry and skitzo when you dont get it? if not, my apologies, but that's how you're seeming right now. completely over the top and lacking in logical thought process.I would neg some more but I've hit my daily limit!

      • person who buy the most get most discount most like V had get rid of some stock. sold them coles cheeper so they pass this on to the customer.

    • +6

      Sorry, but I have to cut you down here because I don't think you understand what a business actually is. There are a couple of things you've said here that aren't technically correct, but I'll deal with them individually.

      Coles operates a Business to Consumer model, they do not cater for businesses, else the shelves will be empty 24/7.

      This is incorrect. My workplace recently had a BBQ and we went and got our sausages from Aldi. It was the cheapest. It was for a business. Sole traders buy stuff from Coles and Woolworths…etc. Not all businesses buy things to then sell them for profit. Many businesses buy their consumables from Coles and Woolworths. If you've ever worked in an office, where do you think they get their milk and coffee. Come on.

      Businesses operate under an ABN, an ABN provides you incentives that the average individual tax-payer doesnt get…

      Firstly, "bulk buy direct" is nonsense. Read the word again, bulk, what does bulk mean, it means high quantity. Just because you run a business does not mean that you need high quantity and hence, you might not get bulk discounts.

      Secondly, discounted freight and delivery is the same as the first, it depends on how much you need. Same goes for support and tax incentives. Don't sit here and try to reason that business should pay more because they get support and tax incentives. That's bullcrap. I don't run a business, but if you think they get all these wonderful benefits, then why don't you go and register an ABN and a sole trader and see reap all those benefits then?

      You seem to all have an issue thinking i'm saying it's illegal, this forum is from a Moral/Ethical point of view.

      There is nothing wrong with it. At the end of the day, regardless of whether you are buying for your immediate consumption, for your consumption days later or for resale, there's nothing wrong with purchasing the amount you require. The businesses are not doing anything wrong. If you feel that Coles and Woolworths aren't catering to your needs, then you go and complain to Coles and Woolworths.

      What i'm saying is that it's hoarding, forget the analogy you are all stuck on

      No it's not, hoarding is where there is a run to buy food because of a natural disaster or an impending shortage. This is not hoarding, it's simply buying because it's a good price.

  • +12

    I saw an entire Family of 3 inbreds

    ???

    Why get mad?just get a raincheck.

  • +3

    I stopped collecting Lego because I got disgusted with feeBayers hoarding Lego sets for kids to miss out, then these hoarders will then sell the Lego sets for profit and brag about it. Lego US has a limit of 5 of a set and will cancel your VIP should you try to work around the limit. Limits should be placed because people miss out. But that's the natutre of commercialism/ consumerism.

  • +23

    Your anger is misplaced, and a bit baffling.
    Why would the small business "grub" buy from Colesworth unless they sold it cheaper than their wholesaler?
    Are you angry that the wholesaler is charging more to the corner store than Woolies?
    Why should an individual buying one item get a better price than somebody else prepared to buy a van load?

    And why didn't you get a raincheck if you feel this strongly about it?

    You seem a bit…confused?

  • +8

    inbreds apes dirty eye pig hoarding dirty incident grub.

    Just sounds like normal folk stocking up a little for an oncoming zombie apocalypse.

    Or perhaps some Gym Junkies

    (https://www.ozbargain.com.au/node/159749)

  • +9

    Rellos used to own a small mixed business back in the 60's and even then a lot of stuff was cheaper at the local supermarket than through their wholesaler.
    Its a bit rude when they clean the supermarket out completely though.

    That aside, small business markup is very justified. For one, you are paying for the convenience, surely that is worth something?
    At the end of the day after all the bills are paid some small business owners are left with very little to take home.
    Add to this that some work 12hrs a day 7 days a week and if they do have any days off then those days come with zero income. Also remember they usually have no lunch or smoko breaks, no sick pay, no long service leave and have to put aside for their own superannuation/retirement.

    Many will say that they make big money, well some do, but many don't.

    It's a hard world out there when mum is not paying all the bills..

  • +22

    Newsflash. Most eateries and cafe's buy their beverages from Coles and Woolies because it's cheaper than buying from the supplier. And they don't have to wait for stock to arrive, and it minimises the amount of time you are without stock (not to mention, if the stock comes damaged and you forgot to inspect it when it arrives, you have to call the company and get them to take the damaged stuff back).

    When I worked at a cafe several years back, we also bought trolley loads of cans and 600ml bottles of fizz from supermarkets because when they had special offers, their prices were way, way cheaper than what the suppliers were quoting. This was in North Sydney. Every other restaurant in the area did the same.

    Anyway your anger is misplaced — every retailer, cafe and restaurants do this, they will simply source their stuff from the cheapest possible outlet. It's just common business sense to cut down costs and maximise profit.

  • +2

    I'd be pretty certain this isn't their preferred family outing either. If their sales rep could sell to them cheaper than coles they would probably enjoy delivery to the store also.

  • +5

    First in Best dressed + Raincheck.

    Regardless of the situation, you don't need to call them inbreds.

    Else this community would be deemed as a group of 'inbreds' by the general public, every time a deal gets "ozbargained"

    • +7

      OP seems to have a habit of whinging in comments about inbreds, pigs, apes, gym junkies, businesses that hoard and Ruslan Kogan. Pretty sure a hybrid of all of the above running a cafe would be their worst nightmare.

    • +6

      I totally agree with you, OP didn't have to call them "inbreds" or "apes"..there is no reason for a reasonable person to do so. I think anger got a hold of him for not getting his daily Redbull V.

  • +2

    You're talking about supermarkets that will sell goods by the PALLET… Why would they be worried about 3 trolleys worth? As Derkyft mentioned, First in Best Dressed…

  • +6

    OP, can you put your hand on your heart and claim that if you were in the same situation (i.e. operating a small store) and buying from coles was cheaper than buying from your supplier, that you would honestly buy from your supplier even though it would cost you much more?

    If you carried on that way, you would be out of business pretty quick. It is up to Coles to limit the purchases to reasonable quantities, if they wanted to.

    Seems like Whingeing is at A (sic) ALL TIME HIGH

  • Hmm RedBull and other marketers wouldn't like this for sure. Risk of on a hot day they could be stuck in traffic or forget their cargo and spoil the drinks and causing stomach upsets etc for those that then consume the product.

    I've seen people sell 'Not For Resale' funsize bags of confectionary etc, but people don't care or look.

    Perhaps Coles needs to introduce a 'Maximum of 3 cases per person' type rule.

  • I don't think this is big an issue as OP thinks.

    How about the big banks, Foxtel, telcos, car rentals, airlines, utilities overcharging?

    Sure it's dodgy but in other places they would be considered 'entrepreneurial'.

    The small biz can claim to run at a loss because they can hire their family and pay them whatever salary they want, eating up all the profits. Same with buying new cars and boats and claiming they're 'biz use'.

  • +1

    They probably weren't business owners at all, just Wendy doing her latest ACA story.

  • +3

    There is nothing unethical about it.
    A well run business will always compare prices,procure its products at the best price from different suppliers to maximise profit.
    In OP case the supplier happens to be Coles.
    The family has done OP a favour. Now instead of having cheap redbulls for a week, with rain check , OP can have cheap red bulls for a month.

  • +1

    While this sort of thing can feel a bit unfair, the reality is they are stocking up at the cheapest price they can get. I'd suggest getting a raincheck and/or just going to another store.

    Same thing happens here in Hurstville when Coles have their 1/2 price Luv-a-duck sales. Every time Coles staff unpack cartons of frozen ducks the words goes out, and local restaurants leave with trolly loads. Casual buyers don't have a chance.

    Coles now have "no rainchecks" on their duck specials, as these restaurant owners got wise and started organising gazillions of rainchecks on ducks during the sale periods :-)

    My easy solution was dropping into Roselands Coles, a few suburbs away, when driving past, and I could buy as many as I wanted. Wifey isn't too fussed about 6 ducks in the freezer, but she'll enjoy eating my red duck curries :-)

  • +7

    They did you a favour, those drinks are bad for you.

      • +18

        Hey frostman! Just so you know, this was your only comment in this thread without a neg. It felt wrong for some reason so I took care of it :)

        • ur awesome!haha

  • +5

    Gosh I would have felt alot sorrier for you if you'd left out the racism. Now I'm just thinking that you go through life hating on everyone.

  • If Coles or Woolworths are aware it's another business buying product they will remove the customer from the store (at least in some cases because I've seen the small business owner's getting very annoyied about being asked to leave LOL)

  • +8

    So what you want is things to be fair? Everyone gets to have the same amount of Red Bull when it's on special? Perhaps we should not have any specials at all, to avoid not being 'fair'. Maybe we should all be restricted to earning the same amount of money too. So that all of our wages are 'fair'.

    Let's take it one step further, everyone should live in the same type of dwelling, because someone with a bigger house is not 'fair' to you. It's really 'fair' that these businesses are earning money, possibly more than you, so let's make everything state owned. That way it's all very 'fair'.

    One Red Bull per person, no specials for anyone, same wage, same houses, state owned everything. So everyone can be 'fair'.

    Oh wait.. that's communism. It didn't really work out too well for the fuzzy creatures of 'Animal Farm' either.

    Don't get me wrong, I'm not saying that what they did was not excessive, but it was well within their rights to do so.

    As a small business owner (not in food/hospitality), I find your attitude and your descriptions of these people appalling. Just because someone finds an opportunity and takes it they should be punished? I'm sure you use an Apple/Google/Microsoft product, they were all born from seized opportunities, where someone came off second best. But I don't see you boycott them because that wasn't 'fair'. Perhaps not the acquisition of a lot of RedBull from Coles but opportunities none the less.

    It's not like everyone on here doesn't flock to order stuff when there's a pricing error and the latest computer goes to $0.01. I don't see hoards of people crying out that it's not 'fair' to the supplier who made the error and everyone should not purchase the item because of their mistake.

    I get no discounts because i'm a small business, nor do I really expect them. Most of the time when I do purchases and i'm upfront about being a small business, people tend to jack the price up because they don't think it's 'fair' I make a profit from them. But that's life, you deal with it and move on.

    Go get a rain-check if your RedBull is so vital to your every day needs. Heaven forbid that any profits are to be made.

  • +2

    I saw my local boost juice bar buying bulk of milk from Woolworth for cheap. I don't see a problem with that. It a capitalist society. I believe the OP fail to see that.

    • +1

      Unless of course, they cleaned out all of the milk in front of your eyes and there was none left for you.

      Understand both sides motivations and reasons; the business is sourcing their product to help their bottom line. As a consumer going in to shop, it's almighty frustrating to see someone fill trolleys worth of <insert special of the week here> and leaving nothing but dust. Rain-check or not.

      Yea, agree with the judgemental description of the people themselves… really didn't need to take it to that level.

  • +2

    Sorry OP but I see nothing wrong with what the buyer did. I would have done the same if I were to run a business.

    although I would probably do things like that at Costco.

  • I bought a few Sirena Tuna 185g Cans when they were $2.00. I regret not buying enough. I do not run a business but I do eat tuna almost every day due to gym/protein. If they bought four packs, it should usually say on the can "Not for individual sale". If they sell individually they can get in trouble. Also if Coles is selling them so cheap, they must have had a big batch that may have been expiring in few months? Either way if that family is running a business, they would have to sell before the expiry date, or again get in trouble. Just remember, some very smart people run big businesses like Coles, and they are not there to lose money. just make sure next time you buy a soft drink or energy drink, it doesn't say "not for individual sale" or past expiry date.

    • +1

      The not for individual sale is marked on items that don't have the nutritional info on each pack. If the product has this, they can be sold without issue.
      As for expiry dates, it is fine to sell items after the best before date, but most customers would feel hard done by if they didn't get a discount.
      You can't sell items past "use-by", but that is only food that spoils (meat, milk etc.)

  • +7

    One thing I dont like is small businesses using homebrand items, like Vanilla Icecream, which doesn't taste right and I never return to those stores again.

    • I agree! Anyone out there know if homebrand milk and branded (more expensive) milk taste the same?
      My neighbour swears there is a difference, but I can't tell.

      • +2

        1 or 2 years ago I noticed a coffee shop near work use coles milk to make their coffees. hmm they went bankrupt. Wonder if theres a connection there.

        Anyways I drink coles milk since they have a seal on top. Had a few woolworths ones go bad before expiry. Theres only 2 companies that process milk so would be same processing facilities as other brands. Same milk same cow hmm.

  • +2

    I buy the SE Asia redbull (syrup) and mix with cheap soda water or tonic from coles. Goes down a treat, and the cans are usually about 50c each at the family owned Asian deli's.

    • +1

      Thanks - i'm going to try this….

  • +3

    You would probably have gotten a better response if you stuck to the actual subject instead of returning with personal attacks.

  • So OP you are saying that if you ran a business you wouldn't buy your stock at the cheapest price? I doubt you'd be running a business for long.

    Basically you couldn't buy your Red Bull and you're having a tantrum about it.

  • Not everything is fair though. There's no rule against people hoarding items. You'd do it too if you were a small business owner. For your information, a large portion of small & independently run businesses end up failing and closing down so your assumptions are completely wrong. Also think of it as a favour, they saved yourself from ruining your liver.

  • +14

    as a manager of a small business i shop where its cheapest. often this is coles. for example they had a special on mission tortilla wraps recently which we use a lot of. They are usually $5 but were half price. i asked a staff member if they had spare boxes in the back, they did, so i bought 5 boxes for the business.

    i really don't see the problem with this.

    What exactly was your point OP? the whole point of business is to sell things for a profit. if shopping in bulk at coles increases your profit margin then why would you not buy as much as possible from there?

    oh and fyi when i bought the tortilla wraps i specifically asked them for boxes from the back so i could leave the ones on the shelf, not because of whingy c**ts like you but so the poor bloke who worked there doesn't have to spend another 30 mins restocking the whole shelf

  • I am actually surprised by the fact that buying from Coles/Woolies when they are on special is cheaper than buying from any other sources. I thought small businesses would have other places that they get their stocks from. I genuinely thought Coles and Woolies going on special would still be more expensive than what you would get from buying bulk.

    • +7

      Not even close. Some items we buy direct from the manufacturer are cheaper from supermarkets at an every day price. Red Bull is over $2 a can from a wholesaler, plus GST plus delivery, getting it for $1 a can is amazing value and helps with overheads. Looking at a different industry as another example, you can save $25 a case buying Corona at Dan Murphy's rather than from a Wholesaler. Another example, the exact same brand/package frozen pastry from Woolworths is 40% cheaper than through a wholesaler. Tip Top bread is cheaper from Coles than from Tip Top.

      • +2

        Wow, this is really interesting. My mind is literally blown right now… Also, it really does sound like Woolies and Coles are basically duopsonists.

        Thanks for the detailed information btw. :D

        If I can ask a question, is the price from wholesalers always more expensive than the price Woolies and Coles have?

  • Part of this thread has turned to attacks on OP. I think there's enough discussions here. Thread closed.

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