Supermarket pricing - £1 Pepsi
Supermarket pricing - £1 Pepsi
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Discussion

thetapeworm

Original Poster:

13,751 posts

267 months

Wednesday 2nd May 2012
quotequote all
I know I need to get a life but I spotted this earlier:







Why would anyone pay £1 for 600ml when they can have 2000ml for the same money?

And just to confirm my "get a life" status:

May 2011:


November 2011:

sherman

15,186 posts

243 months

Wednesday 2nd May 2012
quotequote all
thetapeworm said:
I know I need to get a life but I spotted this earlier:

You were done.

I bought a bottle out of a fridge in pound stretchers ( I was buying a grater) yesterday for 49p

Butter Face

34,590 posts

188 months

Wednesday 2nd May 2012
quotequote all
Convenience I suppose? If you just wanted to have a quick drink you wouldn't buy a 2l bottle would you? :P

thetapeworm

Original Poster:

13,751 posts

267 months

Wednesday 2nd May 2012
quotequote all
Butter Face said:
Convenience I suppose? If you just wanted to have a quick drink you wouldn't buy a 2l bottle would you? :P
I'm in Yorkshire, of course I would.

I would have to add that I don't drink Pepsi though, this was just a bored observation rather than feedback from a disgruntled Pepsi enthusiast smile

Odie

4,187 posts

210 months

Wednesday 2nd May 2012
quotequote all
sherman said:
thetapeworm said:
I know I need to get a life but I spotted this earlier:

You were done.

I bought a bottle out of a fridge in pound stretchers ( I was buying a grater) yesterday for 49p
Home Bargains has consistently been 39p I think Pepsi UK are clearing old stock (after a change to the bottle). I usually buy 10 for the week, the 500ml bottles are £1.20 in the machine at work.

Tonsko

6,299 posts

243 months

Wednesday 2nd May 2012
quotequote all
thetapeworm said:
And just to confirm my "get a life" status:

May 2011:


November 2011:
Get a life or not, that's an interesting comparison. Could the ingredients have escalated that much in that short a time?

Odie

4,187 posts

210 months

Wednesday 2nd May 2012
quotequote all
Tonsko said:
thetapeworm said:
And just to confirm my "get a life" status:

May 2011:


November 2011:
Get a life or not, that's an interesting comparison. Could the ingredients have escalated that much in that short a time?
Might have been 9p at launch or a change in the own brand pricing stategy their may have been a business case put forward that calculated that the increase in price would increase the customers perception of the product and increase sales.

greysquirrel

333 posts

197 months

Wednesday 2nd May 2012
quotequote all
Cashing in on those that either a) don't look or b) are just grabbing a 'convenience' bottle. If I am out getting lunch or getting a drink for the car then i'm not going to walk around swigging a 2l bottle!

thetapeworm

Original Poster:

13,751 posts

267 months

Wednesday 2nd May 2012
quotequote all
greysquirrel said:
Cashing in on those that either a) don't look or b) are just grabbing a 'convenience' bottle. If I am out getting lunch or getting a drink for the car then i'm not going to walk around swigging a 2l bottle!
Buy the small bottle on Monday, keep the empty, fill it from the 2L for the rest of the week.

£3 saved to spend on jars of curry sauce.

mph1977

12,467 posts

196 months

Wednesday 2nd May 2012
quotequote all
fizzy pop really is cheap to make - the 'value' supermarket stuff represents what you can sell it at and cover your costs - the price that you pay for cans and 500 ml bottles is the price the convenience market will stand ... if you 'lower' yourself to go into wilkos or farmfoods/fultons/ <local frozen food cheapie chain > you'll pay 40 - 50 p a 500 ml single bottle

also the like of farmfoods will sell you a 'crate' of 24* 500 ml bottle for 8 gbp - this is the same or less than than it'll cost at the cash and carry ...

we've conveniently avoid pub pricing of post mix fizz

Tonsko

6,299 posts

243 months

Wednesday 2nd May 2012
quotequote all
True that - Lidl is cheaper than Booker on some things.

calibrax

4,788 posts

239 months

Thursday 3rd May 2012
quotequote all
Odie said:
Might have been 9p at launch or a change in the own brand pricing stategy their may have been a business case put forward that calculated that the increase in price would increase the customers perception of the product and increase sales.
The 9p price was most likely a below cost price sale, known as a "loss leader". Having a few products like this entices people in for a bargain who then go on to buy other things, on which the supermarket makes enough profit to easily offset the loss on the discounted products. Loss leaders tend to be switched around every so often to bring in other demographics - hence the increase (the cost price of the curry sauce is probably 15p a jar or thereabouts).

Tonsko

6,299 posts

243 months

Thursday 3rd May 2012
quotequote all
See, I assumed that it was just greed. "Lets increase the price by 320%. See if it still sells." Loss-leading is plausible though.

CBR JGWRR

6,580 posts

177 months

Thursday 3rd May 2012
quotequote all
In my local tescos (A few years back) shortbread was 27p. Then it got upped to £1.67 overnight.

We complained...

dmitsi

3,583 posts

248 months

Thursday 3rd May 2012
quotequote all
In my local co-op Kronenbourg is priced 1.49 for an individual can. Pack of 4 is 6.12.
I pointed this out when buying some (was going to get 8), and the lad on the till agreed it was strange. He rings them through one by one, but when he gets to the 4th the total jumps to 6.12.
So I bought three, then another three. It's still priced like that.

Chimune

4,231 posts

251 months

Thursday 3rd May 2012
quotequote all
I was in sainsburys yesterday. Took a sarny and crisps to checkout: £3.15.
'Go and get a drink and this will cost you £3' says the lassy.
Didnt want a drink but took one off the shelf and gave it to someone.

So my Pepsi cost -15p !

The bizarro world of supermarkets...

Odie

4,187 posts

210 months

Thursday 3rd May 2012
quotequote all
calibrax said:
Odie said:
Might have been 9p at launch or a change in the own brand pricing stategy their may have been a business case put forward that calculated that the increase in price would increase the customers perception of the product and increase sales.
The 9p price was most likely a below cost price sale, known as a "loss leader". Having a few products like this entices people in for a bargain who then go on to buy other things, on which the supermarket makes enough profit to easily offset the loss on the discounted products. Loss leaders tend to be switched around every so often to bring in other demographics - hence the increase (the cost price of the curry sauce is probably 15p a jar or thereabouts).
Im a store designer, I know what a loss leader is, its unlikely its a loss leader.

Loss leaders are usually aspirational products or products with a high marketing exposure. But of course I could be wrong as I dont know morrisons marketing strategy or their target customer base.

I agree with the poster above its a very very bizzare industry, you should try working in it..

Edited by Odie on Thursday 3rd May 14:10

Aydogflipper

436 posts

194 months

Thursday 3rd May 2012
quotequote all
The cost of the pop is very expensive, even the 2 litre.

They cost less than 10p to make per bottle on average, including transport costs etc.



hyperblue

2,905 posts

208 months

Thursday 3rd May 2012
quotequote all
Chimune said:
I was in sainsburys yesterday. Took a sarny and crisps to checkout: £3.15.
'Go and get a drink and this will cost you £3' says the lassy.
Didnt want a drink but took one off the shelf and gave it to someone.

So my Pepsi cost -15p !

The bizarro world of supermarkets...
I believe that is what they call a "Meal Deal", welcome to Earth.

Garym85

99 posts

176 months

Thursday 3rd May 2012
quotequote all
Well beat this one........

Jammy dodgers - £1.15 per packet.....or two packets for £1.


I understand where you are coming from on the 500/600ml bottles and 2l bottles.
Speaking purely from a career in FMCG goods for a large alcohol company I would say that the £1 for 2l price deal is a short term stunt deal.

It plays into a market that caters for trolley shoppers and not those who are in for a sandwich/drink from the front of store.
It also- by way of offer does not have the option of a chilled bottle which is where smaller bottles win.

If its purely on net price then nobody would buy smaller bottles.