dH
doug H

1 reviews | Active since Dec 2018

03 Jul 2019, 14:00

Rolling Up the Prices improves retailers Profits at Consumers cost

First of all, let me explain I have no complaint against Checkers and their rating is not terrible but your systems demand that I pick a business and I pick a rating. So it is for that reason and that reason only that I picked Checkers and I picked a terrible rating. My problem is with all the Supermarkets because they all do it. ROUNDUP their prices to R NN:99 c. I recently walked through my local store specifically to look for any price that did not end in 99c. Amongst the thousands of items in the store, I found 2, They ended in 90c. How is that possible I asked myself? On the basis that Checkers, like Pick & Pay, like Spar, etc do a detailed costing to arrive at a fair and honest selling price for every item before it goes onto the shelf how is it possible that the selling price for all those thousands of different items, all end in 99c. For all those CALCULATED prices to end at 99c the calculations have been manipulated and the profit margin increased accordingly. Simply impossible. For example, a CALCULATED fair SELLING PRICE for an item including a profit margin of 25% is R102: 10. This 25% represents a monetary value of R5:50 The price is then "ROUNDED UP" to R102:99c ie 89c is added to the price, now the monetary profit on the item is R6:39 and the percentage profit margin is now approx 25.5%. The retailer inflates his profit margin and I pay an inflated rounded up price for the item. Fact, I spend approx R8500:00 -10000:00 per mth on the rounded up prices for my groceries . If I only paid his calculated price and not his "rounded up" price I could save R 100 m-R150 a month. In these hard times, South Africa is going thru right now that R100 - R150 a mth adds up Why am I and millions of other shoppers paying a "Rounded up" price for our groceries? Mr. Checkers, Pick & Pay, Spar work out your cost price, add a fair profit and let me pay that price and not you're rounded up price ok. because despite what your marketing guru's tell you, I don't see R10:99 as R10 something, I see it as R11:00 I would love to know what the difference is between a retailers "CALCULATED PRICES" profit and his "ROUNDED UP" prices profit is. It must be in the many millions. Money, millions of unemployed South Africans could do with.

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