Pot. Kettle. Black

I had to laugh when last month Tesco of all people asked for help to increase prices on cheap booze.
Author:
Publish date:
Social count:
0
10_18_14_7_TN-Counter-Insurge-Icon.jpg

Pot, kettle, black springs to mind.

Asking for Government intervention on “cheap booze” was just unbelievable. If Tesco has such a moral issue with this, then they can put their prices up and let the consumer decide if they want to pay more for the morally correct pricing of Tesco.

The funniest thing about the whole thing was the adverts for, you’ve guessed it, cheap booze and 3 for 2 on wine that very evening. Classic.

I love the story of the potato farmer who was screwed so far by supermarkets that he started making his own crisps, in unusual flavours. Good quality, premium crisps. Now he is very successful and wants to support the independents and a quality brand supermarket who helped establish his crisp business. He didn’t want to sell to a big supermarket and politely refused to supply them. That supermarket has now withdrawn the crisps after buying through the back door and he is threatening legal action.

Prices WILL rise, the Chinese problems with lack of manual labour, further safety measures and raw costs not just for production but transportation will put real pressure on prices. Some suppliers are hedging bets and still didn’t have order forms and price lists in early March, bit stupid when you are currently running a TV campaign.

Having no order forms makes it difficult to order. But, what’s more, at the last sales meeting the agents were lambasted because of lack of orders!!!

But what if the aggressive supermarkets really did act on those moral obligations? What if they stopped screwing suppliers to the bare bones, what if they stopped demanding funding for half price promotions that don’t need to be done? What if a retailer didn’t ask for a retro because of another crap year?

Would prices have to rise, or could prices remain the same but without the give away funding?

This year will possibly see even less consumer “free money”. I’m writing this just before the Budget, but I’m not expecting too much hope from that. The Government has a big black hole to fill and doesn’t seem to care how much they squeeze businesses and the man on the street. They are even going after the lucky sods living abroad now.

Buckle the seatbelts folks. It’s gonna be a bumpy ride.

Related

5_Have Your Say Logo.jpg

Your space, your shout

Welcome to our new forum for retail opinion, where all toy retailers are invited to share their thoughts, vent spleen, stick it to ?The Man?, or maybe just share some good advice with fellow store owners. We kicked off by asking for thoughts on pricing and margin erosion...

5_14_7_TN-Counter-Insurge-Icon.jpg

The rail thing

Last year I wrote about Mr Railwayman, he has finished his scale model of the village he lived in. He has the Graveyard that he buried his wife in (not under the concrete steps I hasten to add) all mapped out, and he is ready for his next challenge.

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.