Half price offers in the supermarkets
Discussion
anonymous said:
[redacted]
okay......................................................................................................................................................don't shoot the messenger... This is something that I was taught as part of my degree. If you are going to shoot anyone down, make it my obviously lying marketing lecturer.....
benoli said:
The Ben said:
Tesco only have around a 2% profit margin....
it'll soon be 4.5% profitwhen the VAT drops to 15% will all suppliers drop their sales prices ? NO . . . . of course they won't
we end up paying the same price tommorrow as it is today - irregardless of tax
The Tesco store I worked at made around 70m revenue a year and 7m ended up as profit.
That included all of the store running costs but I don't know how much of that included suppert from main office
That was a few years back and it was always growing
Special offer deals were everywhere back then and they still are everywhere.
That included all of the store running costs but I don't know how much of that included suppert from main office
That was a few years back and it was always growing
Special offer deals were everywhere back then and they still are everywhere.
benoli said:
The Ben said:
Tesco only have around a 2% profit margin....
it'll soon be 4.5% profitwhen the VAT drops to 15% will all suppliers drop their sales prices ? NO . . . . of course they won't
we end up paying the same price tommorrow as it is today - irregardless of tax
All part of the government crackdown on fun
Right then, Ladies and Gents...
I have worked with top level branded suppliers to the UK Grocery Industry for circa ten years, living and breathing "their" Supermarket customer consumer promotions...
1/ Any major supermarket will expect a promotion to be 'margin maintained' - they make the same money, day in, day out - it's the supplier who funds the consumer discount.
2/ There will be a terms deal which will mean a further 1% to 5% is paid at year end, on all volume.
3/ The promotion needs to be advertised to the consumer. That little plastic barker on the shelf, which tells you it's on deal... that's another £25k. If they feature it on a leaflet as well, another £20k payment from the supplier to the supermarket.
4/ Any promotion needs to be on a Gondola End to work, thats another £60k paid to the supermarket, for a three week slot...
5/ Given this investment, you need to be sure that each individual store is complying to the agreement (Mults will not underwrite their agreements) - think £250 per store, to check what has been agreed, is actually happening. If a store does not want to run your promo, it does not have to...
6/ The supermarket then deduce the fact, had they had a Baked Beans on a 'Buy one, get six free' promotion on that shelf, they would have sold six times the volume that we did, they will invoice you for the loss of sales and profit.
7/ If your lorry was late delivering to one of their RDC's (after 10 minutes) then there is a another blanket £10k fine...
And if you refuse any of these charges, you are out - overnight..!
Make no mistake, the value for money that Supermarket's preach is far from that... Dont even get me going on price fixing...
Rant over, Once my career is over, I will be writing a book.
I have worked with top level branded suppliers to the UK Grocery Industry for circa ten years, living and breathing "their" Supermarket customer consumer promotions...
1/ Any major supermarket will expect a promotion to be 'margin maintained' - they make the same money, day in, day out - it's the supplier who funds the consumer discount.
2/ There will be a terms deal which will mean a further 1% to 5% is paid at year end, on all volume.
3/ The promotion needs to be advertised to the consumer. That little plastic barker on the shelf, which tells you it's on deal... that's another £25k. If they feature it on a leaflet as well, another £20k payment from the supplier to the supermarket.
4/ Any promotion needs to be on a Gondola End to work, thats another £60k paid to the supermarket, for a three week slot...
5/ Given this investment, you need to be sure that each individual store is complying to the agreement (Mults will not underwrite their agreements) - think £250 per store, to check what has been agreed, is actually happening. If a store does not want to run your promo, it does not have to...
6/ The supermarket then deduce the fact, had they had a Baked Beans on a 'Buy one, get six free' promotion on that shelf, they would have sold six times the volume that we did, they will invoice you for the loss of sales and profit.
7/ If your lorry was late delivering to one of their RDC's (after 10 minutes) then there is a another blanket £10k fine...
And if you refuse any of these charges, you are out - overnight..!
Make no mistake, the value for money that Supermarket's preach is far from that... Dont even get me going on price fixing...
Rant over, Once my career is over, I will be writing a book.
ADJimbo said:
Right then, Ladies and Gents...
I have worked with top level branded suppliers to the UK Grocery Industry for circa ten years, living and breathing "their" Supermarket customer consumer promotions...
1/ Any major supermarket will expect a promotion to be 'margin maintained' - they make the same money, day in, day out - it's the supplier who funds the consumer discount.
2/ There will be a terms deal which will mean a further 1% to 5% is paid at year end, on all volume.
3/ The promotion needs to be advertised to the consumer. That little plastic barker on the shelf, which tells you it's on deal... that's another £25k. If they feature it on a leaflet as well, another £20k payment from the supplier to the supermarket.
4/ Any promotion needs to be on a Gondola End to work, thats another £60k paid to the supermarket, for a three week slot...
5/ Given this investment, you need to be sure that each individual store is complying to the agreement (Mults will not underwrite their agreements) - think £250 per store, to check what has been agreed, is actually happening. If a store does not want to run your promo, it does not have to...
6/ The supermarket then deduce the fact, had they had a Baked Beans on a 'Buy one, get six free' promotion on that shelf, they would have sold six times the volume that we did, they will invoice you for the loss of sales and profit.
7/ If your lorry was late delivering to one of their RDC's (after 10 minutes) then there is a another blanket £10k fine...
And if you refuse any of these charges, you are out - overnight..!
Make no mistake, the value for money that Supermarket's preach is far from that... Dont even get me going on price fixing...
Rant over, Once my career is over, I will be writing a book.
interesting postI have worked with top level branded suppliers to the UK Grocery Industry for circa ten years, living and breathing "their" Supermarket customer consumer promotions...
1/ Any major supermarket will expect a promotion to be 'margin maintained' - they make the same money, day in, day out - it's the supplier who funds the consumer discount.
2/ There will be a terms deal which will mean a further 1% to 5% is paid at year end, on all volume.
3/ The promotion needs to be advertised to the consumer. That little plastic barker on the shelf, which tells you it's on deal... that's another £25k. If they feature it on a leaflet as well, another £20k payment from the supplier to the supermarket.
4/ Any promotion needs to be on a Gondola End to work, thats another £60k paid to the supermarket, for a three week slot...
5/ Given this investment, you need to be sure that each individual store is complying to the agreement (Mults will not underwrite their agreements) - think £250 per store, to check what has been agreed, is actually happening. If a store does not want to run your promo, it does not have to...
6/ The supermarket then deduce the fact, had they had a Baked Beans on a 'Buy one, get six free' promotion on that shelf, they would have sold six times the volume that we did, they will invoice you for the loss of sales and profit.
7/ If your lorry was late delivering to one of their RDC's (after 10 minutes) then there is a another blanket £10k fine...
And if you refuse any of these charges, you are out - overnight..!
Make no mistake, the value for money that Supermarket's preach is far from that... Dont even get me going on price fixing...
Rant over, Once my career is over, I will be writing a book.
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