Its what the consumer is willing to pay. Things with high mark-ups have been dearer - ice creams, packet of crisps, soft drink.
The ice cream Mr Z likes is $3.80 RRP for a single at the supermarket, servo etc, but $0.86 each when purchased in a pack of 24 from the same supermarket.
When these items are on special, it is usually half price or more. Servos have a spend $x on fuel and purchase one, get one free, or special deal - 2 chips + drink.
Thanks and yes, understood.
I must admit to being dismayed at the lack of competition in our grocery suppliers, apart from the occassional item here and there.
I see Costco is making huge inroads into Australia, because they actually do not float everything up to “what the consumer is willing to pay”.
The problem I find with that attitude is that when things don’t sell and profits seem at risk, they just inflate prices on everything … and silly consumers like us, pay it. It’s not like we have a lot of choice given the lack of competition and suppliers int he market.
Folks wonder why the cost of living is going up but tend to give the grocery suppliers a free pass.
I am amazed at the lack of concern by other consumers at such price gouging and it is just passed off as, that’s the way it is.
Yes, I get that … but no amount of defending price gouging supermarkets and gas stations is going to change my mind or soften my attitude to it.
I do take my business elsewhere or don’t buy the products, but clearly there are lots of people who just suck it up and that encourages the price gougers … we should expect no change in their behaviour as a result.
So far there is no law to stop them from price gouging as is in other Western countries, and that is the problem.
