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Date:         Sat, 24 Apr 2004 23:45:36 -0400
Reply-To:     Joy Hecht <jhecht@ALUM.MIT.EDU>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Joy Hecht <jhecht@ALUM.MIT.EDU>
Subject:      price of milk (was RE: 2.1 hose price deal
In-Reply-To:  <BAY12-F1222UAaTzvb500009ea8@hotmail.com>
Content-Type: text/plain; charset="iso-8859-1"

Loss leaders, in some cases. Typically many other products will be more expensive at the local convenience store. They also have little to choose from.

The grocery store isn't exactly exploiting anything. They are providing a useful service of having it all in one store. To customers who value their time (and drive low-mileage vanagons - see, it IS relevant! :-), it's preferable to shop there than to spend time and gasoline running around time searching for bargains on individual items.

Is it still Friday somewhere?

Joy

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Joy Hecht and Matilda, 1989 Burgundy Vanagon and Henrietta, sad-eyed orangutan who waltzes with Matilda and me and Bicycle and Kayak, who ride on Matilda

For musings about life and the vanadventures: http://users.rcn.com/jhecht/gypsy ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

> -----Original Message----- > From: Vanagon Mailing List [mailto:vanagon@GERRY.VANAGON.COM]On Behalf > Of Chris DeLong > Sent: Saturday, April 24, 2004 1:36 PM > To: vanagon@GERRY.VANAGON.COM > Subject: Re: 2.1 hose price deal > > > please explain how a gallon of milk at the grocery store is 3.50 and the > same gallon of milk is 1.99 at the quik-e-mart. also how is it that a half > rack of Corona is 16.00 at the grocery store and its 12.00 at the > quick-e-mart. also a pack of Marlboro cigarettes is 5.40 and at the > quick-e-mart they are 4.60 at the quick-e-mart. Doesnt sound to > me like a 5% > profit. > > Sounds to me like the grocery store is exploiting the fact that everything > is all in one place. > > > > Chris DeLong > Fine Tuning > 206.427.4777 > www.finetuningperformance.com > Seattle, WA USA > > > > > > >From: Norm - RoweBoat <norm@ROWEBOAT.COM> > >Reply-To: Norm - RoweBoat <norm@ROWEBOAT.COM> > >To: vanagon@GERRY.VANAGON.COM > >Subject: Re: 2.1 hose price deal > >Date: Sat, 24 Apr 2004 10:08:48 -0700 > > > >Some items in grocery stores are marked up at a higher rate than others. > >From what I understand (and never having been in the grocery business, I > >can't speak from first-hand knowledge) the overall profit margin is about > >5% > >and their costs (rent, insurance, wages, advertising, etc.) get > covered by > >that. Which means high sales volume is critical. > > > >Plus, at a car dealership, it isn't the car sales that really makes the > >money and keeps the place in business. The Parts Dept. helps > some, but the > >main profit center is the Service Dept. The Service Dept. is > what usually > >makes or breaks a dealership. And if your dealership acts as a > district or > >regional parts supplier (which we weren't, it was just a small town > >dealership) and offer some of your commercial customers a 35% discount > >(keeping 5% for yourself), you're still making a little bit off of the > >discounted parts and your standard 40% off of the bulk of your > parts sales > >(parts used by the Service Dept. on customers' vehicles and > >across-the-counter sales) so you're still showing a good profit margin. > > > >Norm > > > >-----Original Message----- > >Date: Fri, 23 Apr 2004 22:06:25 -0700 > >From: Karl Wolz <wolzphoto@WORLDNET.ATT.NET> > >Subject: Re: 2.1 hose price deal NVC > > > >That margin is after paying fro rent, insurance, wages, advertising, etc. > >Not direct, item-by-item mark-up. > > > >Karl Wolz > > > > > > I used to work in the Parts Dept. at an Olds/Cadillac, GMC Truck > >dealership. > Our prices were across the board 60% cost, 40% markup. So > >even if we sold > to someone at a 35% discount, we still had a > %5 margin. > >Not much, but most > grocery stores operate on a 5% average > profit margin. > > > > Norm > > _________________________________________________________________ > Lose those love handles! MSN Fitness shows you two moves to slim > your waist. > http://fitness.msn.com/articles/feeds/article.aspx?dept=exercise&a rticle=et_pv_030104_lovehandles


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