Battle of the food prices

[stormers]

Supermarket giant Pick n Pay has called for an urgent summit with its suppliers in a bid to cut food and grocery costs - some of which continue to rise.

With more and more people struggling to make ends meet, Pick n Pay chief executive Nick Badminton said consumers were looking for some respite since the dramatic drop in the fuel price - which usually affects prices across the board.

However, Badminton told the Cape Argus this morning that some suppliers continued to raise their prices - a situation he described as "untenable", and which some consumers rightly found "indefensible".

http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=vn20090126111455341C644066

 

[LazyLion]

There are two parts to this problem. The first is unscrupulous Retailers and Wholesalers who are greedy. They don't realize that THEY are also having an effect on the inflation rate, by ripping off the consumers for all they can.

But the second problem is the Consumers themselves. Against all rational expectation and despite their whining and complaing, CONSUMERS CONTINUE TO PAY THE HIGH PRICES.

In a "free market" economy, price levels are automatically adjusted where people stop buying a particular commodity because the price is too high or the value is too low. This trend forces the retailers to review their prices, and competition ensures that someone else will offer the same commodity for a cheaper price.

But where consumers blindly pay whatever price they see on the shelf, this self-correcting trend is neutered and free-fall inflation sets in.

Consumers should fix this...

1) By shopping around, looking for better prices (i.e. don't be impatient or lazy).
2) By using alternative goods or brands.
3) By point blank refusing to pay inflated prices.

South Africans, I fear are too spoon-fed and spoiled to do this though. They cannot live without. So they just perpetuate the situation by paying whatever price is asked of them.

Wake up people. Stop being Sheep. Stop buying over-priced food items!

 

[stormers]

Why don’t P&P bring down there no name brand products, in fact its more expensive that the branded product in some cases.

 

[hj2k_x]

There are two parts to this problem. The first is unscrupulous Retailers and Wholesalers who are greedy. They don't realize that THEY are also having an effect on the inflation rate, by ripping off the consumers for all they can.

But the second problem is the Consumers themselves. Against all rational expectation and despite their whining and complaing, CONSUMERS CONTINUE TO PAY THE HIGH PRICES.

In a "free market" economy, price levels are automatically adjusted where people stop buying a particular commodity because the price is too high or the value is too low. This trend forces the retailers to review their prices, and competition ensures that someone else will offer the same commodity for a cheaper price.

But where consumers blindly pay whatever price they see on the shelf, this self-correcting trend is neutered and free-fall inflation sets in.

Consumers should fix this...

1) By shopping around, looking for better prices (i.e. don't be impatient or lazy).
2) By using alternative goods or brands.
3) By point blank refusing to pay inflated prices.

South Africans, I fear are too spoon-fed and spoiled to do this though. They cannot live without. So they just perpetuate the situation by paying whatever price is asked of them.

Wake up people. Stop being Sheep. Stop buying over-priced food items!

If all the prices are the same, are we meant to just not buy groceries?

 

[killadoob]

Gary i am not sure about you bud but i need to eat, sure i could go on a hunger strike because bread is 10 rand but i would then not be able to work and i would starve because i would lose my job, so how exactly do you propose we stop paying for FOOD? what should we live on then?

 

[LazyLion]

Buy something else that is cheaper. If Bread is too expensive, buy rice. If Rice and bread are too expensive, buy Pasta or Pap. It's called substituting.

If sliced white bread is too much, buy in-store unsliced bread... or brown bread.

If cheese is too expensive, then don't buy cheese.

If Kellogs cereal is too much for kids give them Jungle Oats.

Buy the cheap products, avoid the expensive ones. Come on, it's not that hard.

The problem is South Africans are too lazy or too spoiled to "go without"

I never said you have to stop buying food all together.

 

[scatlett]

I concur with Gary. We South African's don't protest with our pocket nearly enough.

It is a certainty that prices would trend down if people stopped buying a particular product.

 

[killadoob]

So for my daily lunch i should have rice with marmite because bread is expensive.

What exactly would not buying these products achieve exactly? I think your idea is pretty much the same as those crazy people who said we should not fill up our tanks for a certain period to bring prices down.

It was crazy talk and nothing more because the idea is poor and has 0 chance of working.

So gary you can continue to have your marmite and rice but i am happy with marmite on sliced white bread. Not buying these expensive products will do nothing to bring prices down. Should we print fliers and go door to door ensuring people don't buy certain brands?

 

[noxibox]

If each product was made by a different company then switching products might result in lower prices. However even in that case it is not guaranteed. It is just as possible that the company seeing its product is in demand decides to charge more. If you have one company making multiple products they may simply decide to raise prices on the popular product to compensate for the slow sales of another product. In addition the free market concept assumes people switch or give up products easily and willingly. If you have two products that are known to be equally good and one is cheaper, then yes the switch can happen. Of course we then get back to the scenario where the more popular product becomes more expensive.

The situation we're facing now is one where collusion between retailers could actually be a good thing. Together they can decide to break any supplier who refuses to reduce prices. But it is also dangerous because of course once they're colluding they can take it to extremes and squeeze the life out all the suppliers while boosting their own profits. A Walmart scenario.

Why don’t P&P bring down there no name brand products, in fact its more expensive that the branded product in some cases.

Those are manufactured for Pick n Pay, so they're still subject the same supplier increases.

My experience has been that their No Name stuff is invariably substandard, and I've yet to have an item I've not had to return due to the poor quality. But at least it was once much cheaper.

Now personally I could spend time and effort running around looking for alternative products, trying things to see what I can substitute, and certainly I would like lower prices, but they would have to get a lot cheaper to make it worth the hassle.

 

[scatlett]

the marmite and rice example is a bit silly but you could choose a cheaper brand of bread and a cheaper brand of margarine when you are making your marmite sandwich.

It may not taste as good as you are used to; but that would be the sacrifice in terms of your protest.

 

[noxibox]

It may not taste as good as you are used to; but that would be the sacrifice in terms of your protest.

Until that cheap and nasty one goes up to an even higher price due to its popularity.

 

[Balstrome]

Wait, you guys are missing something, if people have the coin they will pay the price, if they dont they have already done the substitute thing. So those who really can not afford the price increases are getting screwed by those who can afford them and these folk really outnumber the poorest of the poor.

My view is that it's time to take things to the next level, grab a couple of P&P branch managers and make an example of them. Keep doing this until the prices start to drop.
By example, I mean something like a dozen hits with a crane and then release them.

 

[Hein_JHB]

The prices of Nescafe Classic (200g) coffee also went up alot when the petrol price went up and it is still the same price when the petrol went up. First it was about R33 or R35 and it went up to R48.99 before the petrol prices dropped and it dropped a bit and went up again until about R48.99

 

[killadoob]

the marmite and rice example is a bit silly but you could choose a cheaper brand of bread and a cheaper brand of margarine when you are making your marmite sandwich.

It may not taste as good as you are used to; but that would be the sacrifice in terms of your protest.

I am not sacrificing my daily lunch to save R1.50, why must i suffer for a cause that is pointless?

I never buy PNP branded stuff, its normally only slightly cheaper so i don't see the point in buying inferior quality and save 50c.

You cannot protest against food pricing, its just a pointless cause. It's like everyone stops making phone calls so the prices will come down, the prices are so fixed they will never come down. Pointless.

 

[Sackboy]

Pick 'n Pay are not angels. They manipulate prices like crazy. Even a new product never even seen in their flagship store suddenly appears with a NEW sign and a REDUCED sign TOGETHER. GO figure.

 

[LazyLion]

So for my daily lunch i should have rice with marmite because bread is expensive.

What exactly would not buying these products achieve exactly? I think your idea is pretty much the same as those crazy people who said we should not fill up our tanks for a certain period to bring prices down.

It was crazy talk and nothing more because the idea is poor and has 0 chance of working.

So gary you can continue to have your marmite and rice but i am happy with marmite on sliced white bread. Not buying these expensive products will do nothing to bring prices down. Should we print fliers and go door to door ensuring people don't buy certain brands?

Then don't complain about High Prices. If you are not willing to do anything about it, then just keep paying. And when they put them up because you are willing to keep paying, then you can pay some more.... and more and more.

 

[LazyLion]

Economics 101... the law of supply and demand. Google it.

 

[MacNabs]

Cant believe what i am reading here. R50 for 200g of coffee. R10 for bread. Things in sa have gone nuts and i dont know how you guys survive on your rands. Also considering the cost of security, medical aid and schooling. Gone are the days when sa was cheap. Here in nz we pay just over $1 for bread and $5 for the coffee.

 

[boramk]

Buy No Name goods ...

 

[boramk]

Economics 101... the law of supply and demand. Google it.

+1 killadoob its simple.

Instead of Lux soap, but No Name soap, instead of Albany bread, by the cheap non-sliced bread.

Prices will go down