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Discussion » Statements » Rosie's Corner » Do supermarkets/grocery stores test customers by doing weird things with pricing?

Do supermarkets/grocery stores test customers by doing weird things with pricing?

Here's the backstory to the question.

We're in the cookie/cracker aisle. There is a package of imported ginger thins from Sweden. 5oz pack $1.88. RIGHT NEXT TO IT is the exact same ginger thins in plainer packaging. 10oz for $1.48. No joke. Now the  5oz size packaging is snazzier and more eye-appealing. I checked the ingredients and they were identical. Same manufacturer except the snazzier pack said Swedish thins and in smaller letters appeared "ginger". The larger package said Ginger Thins. Could it have been an error or are they testing you to see if you automatically reach for the fancier package without comparing the labels or prices?  I didn't ask an employee about it. But from time to time I see stuff like that going on. One week a certain brand of soup is priced $1.00 higher than another flavor. The next week they switch prices. Now what is that about? We're being tested to see how much we are willing to pay for certain flavors? I love to go shopping. I read all the labels. I pay attention. Take carrots for example. Two 1lb packs were $1.00 each while a 2lb pack was  $2.50.  You assume the larger size is cheaper don't you? I used to but it isn't that way all the time!

Posted - September 21, 2018

Responses


  • 44753
    I've seen that numerous times. One major chain here has a lot of 5/$10 or 10/$8 deals. Many think you have to buy the full amount to get the lower price. I even asked an employee and she though you had to do so. They are always testing us. I could give you many more examples. I check everything before I buy.
      September 21, 2018 8:01 AM MDT
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  • 113301
    Me too Ele. Eagle Eye Rosie at your service. Unless I'm going to the market for one or two things it takes me a good hour and a half to go up and down the aisles and do my due diligence and READ before I buy. Some folks probably don't really care that much or maybe they don't have the time to spare.  Thank you for your reply and Happy Friday!  :)
      September 21, 2018 8:25 AM MDT
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  • 10795
    In chain-stores, prices are set by corporate - not at store level.  Prices are based on things like product availability, manufacture discounts or promotions, or time of year (seasonal; promotions).  Some pricing is set by computers, and 90% of pricing is done months in advance so as to coincide with certain events, seasons or expectations and be printed in sales fliers.Most pricing has to do with what manufactures charge the stores for their product.  The more a store buys, the cheaper they can get it.  Many chain stores have "buyers" - people whose job it is to purchase merchandise at the cheapest possible price from wherever they can get it.

    Markup (the difference between what the store paid for an item and what it resold it for) plays a big part in pricing.  Certain items have a high makeups (sometimes over 100%), therefore a store can put these items on sale more (and perhaps for longer times) and still make a good profit.  

    When a new item comes to market, most are discounted by the manufacturer to help generate sales.  Although stores can buy these items for less, not all of them pass this discount along to their customers (especially non-chain stores).

    Then there's what's called "overstock".  This can be localized to 1 or 2 stores.  if an orderer has "fat fingers" when ordering, 3 platelets of a product can accidentally turn into 333 pallets.  While some warehouses will take back the mistake (at a cost to the store), some wont.  Some store may try to put these items on a quick-sale to get rid of them (back-rooms space is very limited in stores),  However, if it's something they think they can sell off at regular price (say 333 pallets of bottled water in July), they'll just make huge displays of them around the store (inside and out).

    Then there are schematics (the map which shows store personal where to place each product).  Schematics are also usually set by corporate.  There's an entire science behind product placement and customer purchases.    Unfortunately (according to corporate), all stores aren't built/located equally.  Some stores are bigger or smaller than others or have a different demographic.  Therefore they all don't carry the exact same product.  For example, a store that has a high hispanic population will sell more hispanic items than an area with a low hispanic population.  If a store cant sell an item, they lose money so they want to carry items they know they can move.

    Of course, the People who do pricing at store level are human, meaning they aren't perfect.  Sometimes they make mistakes (you try changing prices on over 50,000 items across an entire store in one night).

    All this happens behind the scenes, meaning customers don't see it.  However, what they may see is strange shelpf prices.  Yes, stores have "tricks" they use to boost sales (buy one get one free, 10/$10, and such).  And yes, customers need to be a bit price savvy when they shop (go by price per unit NOT sale price).  However, we  in this country are spoiled by the amounts of items we have available to purchase at our local stores and the ease we have of purchasing these items.
      September 21, 2018 10:20 AM MDT
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  • 113301
    Wow! I hit the "motherlode" with this question Shuhak. Of course opinions are grand but first-person experiences always trump everything! This is a splendid "insider" review of how it all works. Lots of variables which always muddies the waters! Thank you for taking the time to fill us in. I appreciate it! Happy Monday! :)
      September 24, 2018 6:28 AM MDT
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