News that four retailers are moving to £/100g onshelf pricing is only surprising in terms of the apparent reluctance of other retailers to make no-brainer decisions…
Aldi, The Co-operative, Waitrose and Morrisons have made a quantum leap that will result in other retailers playing catch-up…
The savvy shopper
Consumer-shoppers are now better-informed than ever before…and they ‘walk’ when confused or suspicious. For anyone trying to sell them anything, this should be sufficient to encourage the seller to make the proposition and its comparison with available alternatives as easy as possible i.e. £/100g or £/100ml. The shopper is thus presented with a logical way of comparing Product, Price, Presentation and Place on a like-with-like basis, with emotion and other qualitative elements of the proposition playing their part in justifying any price premium vs. the competition.
Difficulties with multi-buys?
One excuse appears to be difficulties in expressing multi-buy offers on a £/100g basis…
When I buy a jar of my favourite coffee at the regular price, I occasionally check jar size for possible reductions i.e. ‘disguised’ price increases (people are counting pennies out there, can anyone still believe they are not checking value-for-money, 24/7, and are totally insensitive to pack-reduction 'short-changing'?).
At the same time, a quick check of the on-shelf price per 100g allows me to compare with other coffees. Incidentally, if there appears to be a uniform price increase across the category ‘to reflect ingredient cost-increases arising from a rainy night in Georgia, or Sao Paulo’, then I switch to tea-bags until the craving becomes unmanageable…
If I succumb to a 3-for-2 offer on a 200g jar that normally retails @ £5.80, I am getting three jars for the price of two 200g jars i.e. 600g for £11.60 = £1.93/100g, compared with the regular rate of £2.90/100g, so I load up…
Simple, unless the retailer – or supplier – does not want me to make that comparison…
And if I even half suspect that this is the case, I am tempted to revert to tea-bags, at another retailer, along with the rest of my average £70/week basket…
Aldi, The Co-operative, Waitrose and Morrisons have made a quantum leap that will result in other retailers playing catch-up…
The savvy shopper
Consumer-shoppers are now better-informed than ever before…and they ‘walk’ when confused or suspicious. For anyone trying to sell them anything, this should be sufficient to encourage the seller to make the proposition and its comparison with available alternatives as easy as possible i.e. £/100g or £/100ml. The shopper is thus presented with a logical way of comparing Product, Price, Presentation and Place on a like-with-like basis, with emotion and other qualitative elements of the proposition playing their part in justifying any price premium vs. the competition.
Difficulties with multi-buys?
One excuse appears to be difficulties in expressing multi-buy offers on a £/100g basis…
When I buy a jar of my favourite coffee at the regular price, I occasionally check jar size for possible reductions i.e. ‘disguised’ price increases (people are counting pennies out there, can anyone still believe they are not checking value-for-money, 24/7, and are totally insensitive to pack-reduction 'short-changing'?).
At the same time, a quick check of the on-shelf price per 100g allows me to compare with other coffees. Incidentally, if there appears to be a uniform price increase across the category ‘to reflect ingredient cost-increases arising from a rainy night in Georgia, or Sao Paulo’, then I switch to tea-bags until the craving becomes unmanageable…
If I succumb to a 3-for-2 offer on a 200g jar that normally retails @ £5.80, I am getting three jars for the price of two 200g jars i.e. 600g for £11.60 = £1.93/100g, compared with the regular rate of £2.90/100g, so I load up…
Simple, unless the retailer – or supplier – does not want me to make that comparison…
And if I even half suspect that this is the case, I am tempted to revert to tea-bags, at another retailer, along with the rest of my average £70/week basket…
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