Does anyone have examples yet of Coles' aggressive discounts of fruit and veg?
Apparently it's starting today, with up to 50% off staples like carrots and potatoes.
Coles Fruit & Veg Discounts... ?
Lbajillionaire on 31/01/2012 - 11:16
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Screw them?
they buttered up and milked the milk/bread industry and now I guess they just need to drive the rest bananas.
ok.. lame one. lol
By the time they are done with the fruit and veg industry they will be screaming 'GRAPE'
I wouldnt be complaining if they are discounting prices…..as for the industries……if the suppliers are able to supply at that price to coles/woolies surely they would still be making money. why would they supply and make a loss. Small suppliers get hit in this but that is just how any business works. Small fish are eaten by the bigger ones unless the small ones find ways to survive…..
that would be good, they've been overcharging consumers for years when compare prices to the markets!
coles veggies are always pretty rancid at my local, same with their meat. woolies seems much fresher
I think it's a bit harsh, if you're having to supply more to make the same amount of money. It's more labour! Imagine if your boss told you that you're lucky, you don't get a pay cut, but you have to work 2 extra hours per day.
i think its a good thing and in turn could help lower rba interest rates in future due to deflation.
I don't know all the details, but I did hear the Coles chief on the radio say that they were willing to buy as much from their suppliers as they could, to sustain the low prices.
So I wouldn't go as far to say that suppliers are only making as much money as before and having to supply more. It's partially true, but in the end the supplier should still make more money. Sure they might be getting paid less per KG, but being able to sell all your produce means more profit.
If you used to sell 10KG of apples at $2/KG, you'd make more money selling 20KG at $1.50.
Crude example, but you know what I mean.Labour costs should be the same. The growers have already spent a certain amount of money making the product, and they'll spend a set amount of money collecting the product before trying to sell it. I'm sure they don't "pick to order", they'll harvest everything they have whether they can sell it all or not. So that part of the equation shouldn't be affected too much.
Not if they are costing you a fixed $1.40/KG.
That is the difference. They are not reducing their profit margins, they are screwing suppliers such that they can sell more at a lower sell price (this much of your example is true) but at the SAME margin therefore making themselves MORE profit overall at the expense of suppliers!
I dont excatly know how the pricing works with Coles/Woolies- but wouldnt the suppliers be determining the prices instead of Coles or Woolies. Surely Coles and them would bargain a price- but the suppliers would only sell if it is viable for them to sell at that price.
All discounts available in supermarkets are at the expense of the supplier, not the supermarket. This is the problem of the duopoly in Australia - if a company doesn't want to sell at the price Coles\Woollies want to pay, they threaten them with removal of the product (or other products sold by the same supplier). The supplier needs the big 2 otherwise they have no distribution channels left. A non-Australian example, but in Holland Coca Cola tried to introduce a small price increase, and the main supermarket disagreed. It got to the point where Coca Cola was removed from shelves for 6 weeks (the supermarket left the shelves empty to damage the Coca Cola brand). Eventually Coca Cola had to give in as they were forced to suspend manufacturing etc. because of the lack of distribution channels. Coles are taking advantage of peak crops, but it sets a dangerous precedent for when things don't go well (drought, flood etc.). But the farmers can't band together to protect pricing, since that is price collusion and against the law. So they have no choice…
Cucumbers were 50 cents at Mosman Park Coles. 100g bag of spinach was $1. These seem heaps cheaper than normal Coles prices, but don't know if they are part of the new order.
Of course, in WA, Coles has admitted they are not going to offer the big discounts. I will shop at Coles less now. Screw them.
They put the price of milk down - but only after they put it up first. For years it was $0.99 per Litre. Then it went up for what - a year or so to $1.20 or $1.30 (forget now) - then back down again. I always thought they did that only so they could turn around and stir up all that hype about it being reduced - just to get their brand on TV some more.
As for their newest discounts… I guess I'll reserve judgement for now. But at their typical $5/$6/$7 per kg for apples, $3/$4 bananas, etc., they'd have to discount the full 50%, to beat Aldi. Potatoes would have to go below 90c/kg. Carrots lower than $1.20/kg. Apples below $2.99/kg. And the last 5 fortnights bananas have been:
24/11/11 - $1.49
08/12/11 - $1.19
22/12/11 - $1.46
05/01/12 - $1.16
19/01/12 - $1.79(Yes, I track our groceries in a shreadsheet. Doesn't everyone?)
No, but that's ok lol
Dude…can you do my taxes?
Ha! :-D
(Yes, I track our groceries in a shreadsheet. Doesn't everyone?)
I've been collecting the dockets since November, with the intention of doing it. Currently they are on a massive 1" thick pile clamped by a bulldog clip.
Since I just wanted to set a $ budget amount for groceries per week, I was only going to do the docket totals, not every single line item ROFL
I also want some dicount news about fruits.
I was at Coles at North Rocks in Sydney this afternoon, here's what I grabbed
Baby carrots 500g bag for 88 cents
Continental Cucumber - 85 cents each (about 350mm long)
Truss tomatoes $1.88 per kg (the greenhouse ones, with stalks but no real flavour)
White Nectarines $1.88 per kg (too hard to eat yet)
White seedless grapes $2.28 per kg (very nice
All appear to be good quality. There was a few other bargains F&V items, but I wasn't paying attention. If anybody wants more info, I am going back tommmorrow and can get pictures or whatever.
Those are pretty good. Put some bananas into a sealed plastic bag with part of the stuff that's not ripe and check every day (to ripen them). We go shopping tomorrow. So we'll see if the other prices are still ridiculous. It was only a few weeks ago we saw cauliflowers at Woolworths for $7 each - the thieves!
its in the papers today
this is just coles/woolies trying to do to fruit n veg industries what they've already done to milk and bread…