Thursday, 22 October 2009

1p Price Reductions - Recession Hits Supermarkets Hard

Shopping in supermarket this morning, noticed a whole range of wine reduced from £3.99 to £3.98 or, in one burst of generosity, £6.99 to £6.98. In spirit of journalistic enquiry, cornered nearby shop worker who turned out by happy chance to be Manager.

Had he seen the mistake on the wine price reductions, I asked him?

No mistake, apparently. Complicated explanation came down to the fact that the wine is already half price i.e. £3.99 wine was originally £7.99. However, 50% price cut was made at Regional level, which meants that wine could not be marked with yellow reduced-price stickers instore.

Cunning plan by store, therefore, to publicise reduction and add customer appeal by putting yellow stickers on bottles, only justifiable by additonal price reduction. Hence 1p reduction. Make sense?

I could see two major flaws in this logic:

Firstly, customers may not notice 50% unadvertised price reduction, but are likely to spot 1p reduction prominently displayed on bottle, and be unimpressed. Did not mention this to him as had a feeling he didn't rate customer IQ, including mine, very highly.

Secondly, as bottles had never actually been on sale in store at £3.99, 1p reduction technically incorrect and misleading, as well as daft. Did mention this to him.

After prolonged discussion, I watched it finally dawn on him that

a) I was right

and

b) he was probably going to have to kill me

Could sense that (b) would cause him very little regret at this point, so moved off sharply and bought bottle of Bucks Fizz.

No price reduction so wasted 1p , but ...what the Hell!

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