Shonkys 2023 Winners Announced

They got me the same way. After complaining, was offered a refund. Not received after three weeks! Dodgy mob, best avoided.

Yep they even block turning off the renewal during the trial, so i got charged too

I’d suggest Santos and Woodside for shonkys. For many reasons, but particularly essentially doubling the price of our gas. Our gas, cost of extraction hasn’t gone up that much (I’m guessing), they’re an oligopoly, and the international price shouldn’t effect aussie gas for aussies. I’d also note the effect on inflation.

The international gas business functions much like a cartel, it is mutually defensive and limited in competition.

There is no way to avoid the domestic price being affected by the international prices under the current regulatory arrangements. Much of the development of coal seam gas in the last 20 years has been specifically aimed at export. As a side benefit to the vendors domestic gas prices have risen about threefold, so the new fields (mainly in QLD and WA) allow huge amounts of additional product to be sold and at a much higher price too.

When all this started out if the federal government had created a reservation policy the local price might not be following the international price but that boat has well and truly sailed. Unless the global price tanks the price of domestic gas is never going back to the heady days when Bass Strait and the Cooper Basin gas (which is not CSG) was very cheap fuel for the east coast.

The solution is to find a cheaper fuel if you need fuel and to raise prices or go out of business if you need it for industrial feedstock.

Santos and Woodside don’t care one little bit if you think they are shonky. They played all our governments like Paganini and now laugh behind their corporate hands. If they got a Shonky they would keep giggling as their shareholders basically don’t care.

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Welcome to the community @douglassmith.

Considering the prior post if there’s a shonky it likely belongs to the many in government over the past decade. It’s an own goal knowing who put them there.

One gas industry response has been to blame government for not allowing even more development of gas reserves to meet the shortages of domestic supply. Unfortunately the already developed cheap to produce gas originally for domestic use is also going to help fill export markets. Soon the only gas that will be left for our future domestic needs will be the harder to get more expensive gas. Open to hear who that shonky should be awarded to. There are likely many candidates over time.

4 reasons our gas and electricity prices are suddenly sky-high

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I reckon many of our governments deserve ‘Golden Shonkys’ for what they did or did not do and 'Platinum Shonky’s for deflecting blame. I doubt any of us could identify a government without at least one in their display case, and a few possibly having storage facilities for their overflow.

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The reason why Woolworths and Coles net profit margin on products has increased as a result of ‘cost of living crisis’ is highly likely due to :

As well known and shown in Aldi’s net profit margins, store branded products are more profitable to the supermarkets. Trend towards store branded products is like to have a positive effect on net profit margins.

Is that saying it’s because they place a higher margin on store branded products compared to premium and well known brands?

Isn’t this the very definition of a rip off?
EG
Taking 10c in the dollar from a $5 store brand vs 5c in the dollar from a $10 popular internationally known brand.

Given market dominance any monopoly, duopoly or … will take every action available to it to protect its return to shareholders and public listed market value.

Comparing Aldi, privately owned and playing its own version of branded products (most exclusive to Aldi) is difficult. Many of their products compete on equal terms with well known international brands and established reputation. How well Aldi exclusive brands compare with the Colesworth store brands might need more clarity? Aldi compete with a more limited product range, typically without brand choice and a no frills shopping experience. All factors that reduce overheads and increase purchasing power.

It isn’t ripping off as retailers are selling store branded products significantly cheaper than branded products. If one follows this line of argument, every retailer that sells stored branded products is ripping off its customers even though they are some of the cheapest products consumers can buy.

It is well known that store branded products provide higher retail margins to retailers. It is in the interests of retailers to sell store more store branded products providing it doesn’t significantly impact on gross revenue. Store branded products are a threat to branded products and bottom line of their manufacturers. Harvard Business Review provides a good assessment on impacts of store branded (private) labels:

Brands Versus Private Labels: Fighting to Win.

Aldi’s success is because they have been highly successful in selling store branded labels, particularly to consumers who don’t place value on brands.

Stored branded product quality has improved over past decades, possibly due to competition and to meet expectations of consumers. Choice testing has shown store branded are still a bit hit and miss in relation to their quality/performance. As they are store brands, their quality/performance can change over time as the supermarkets change suppliers/manufacturers to strive towards minimising the cost base for their store branded products. Minimising the cost base is important to maintain higher profit margins on store branded products as well as being competitive with branded products.

Saying again, that’s putting a greater percentage mark up on a cheap item than a more expensive item.

Recollect,

To the shareholder and board and senior executives it’s saying it’s OK for a business to mark up the less expensive product with a higher margin. Why! Because it’s still overall cheaper to the consumer than the more expensive product sold with a lesser margin.

To the consumer every extra cent saved counts. I agree with Choice. The Shonky awarded to ColesWorth is well deserved, assuming it’s as suggested.

Ultimately how any of us see it, we can all choose to think like a shareholder, CEO etc, or we can think like a consumer. For those consumers most likely to be preferring the less expensive store brands. It’s improbable they would be in a position to be a Colesworth Shareholder, or have the opportunity to think like one.

Expect most in the community think more like one and not the other.

So Kmart, Aldi etc which predominantly sell store branded products, with higher margins, are more deserving of the Shonky than Coles or Woolworths.

The argument that Coles or Woolworths deserve the Shonky because they sold a higher percentage of store branded products compared to branded products is absurd.

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It was suggested there is a greater per unit profit (markup) on these products. How is volume also not a factor in delivering a greater profit? Especially compared to the alternative of selling fewer lower cost store brands and higher volumes of independent brand products.

Who knows if they dodged a bullet (Choice Shonky) for profit gouging customers post Covid? KMart are not predominantly selling food products. They are in a different market segment. Aldi being a private company are not financially transparent. They are a no frills and limited product range/brand supermarket. Hence a lower overall cost base compared to Coles and Woolworths. Aldi usually wins in basket price comparisons.

It does, and as Choice has found in the past Aldi has a higher proportion of imported content in its products, thus giving it the ability to reduce its cost base and sell its products cheaper, still with higher overall margins.

Woolworths and Coles could also increase the imported content in its store branded products, but then I expect they would be accused of not supporting (ripping the guts out of) Australian farmers.

Usually at least two differing views on how it works, but.

A supplier puts Colesworths into perspective as seen from the bottom up. It reinforces Coleworths take care of their own bottom line by taking as little care of their own supply chain as they are able and keeping their own margins healthy.

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Another view of the grocers from the bottom up.

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We might learn if and how shonky the winners may be.

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