Bike boom - is it over?

[Hairy]

9 minutes ago, UnclePolli said:

inflation is nothing more than corporate greet it seems and everyone is using an excuse to jump on it.  besides all the good things CL have done for me..    this one did not go down well.  

I have always found it amusing how when a company buys something to sell for R10, then prices go up if they have to buy new stock would be R1, so the stock they had on the shelf then goes up by R1 .... so they making double the profit off the old stock and then the usual profit on the new stock

[dave303e]

22 minutes ago, UnclePolli said:

inflation is nothing more than corporate greet it seems and everyone is using an excuse to jump on it.  besides all the good things CL have done for me..    this one did not go down well.  

you should be using Squirrel nut butter anyway so no loss

Edited August 12, 2022 by dave303e

[The Ouzo]

2 minutes ago, Hairy said:

I have always found it amusing how when a company buys something to sell for R10, then prices go up if they have to buy new stock would be R1, so the stock they had on the shelf then goes up by R1 .... so they making double the profit off the old stock and then the usual profit on the new stock

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

[bleedToWin]

10 minutes ago, ouzo said:

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

Obviously they should list them for R10.50.
And then when it's down to five on the shelf they should restock and reprice to R10.75

I say obviously because the retailer is a non-profit that sells products based on an intrinsic value calculated from production and distribution costs and the only sensible margins added is solely to cover retail costs. Right?

[esCape-ist]

26 minutes ago, ouzo said:

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

You re price all stock at the new cost price + standard markup. Always.

 

When the input cost rises, you need to raise the price of old stock, because you need to replace that stock at the new cost price. Otherwise down the line there will need to be a doubled increase in price to make up losses on the new stock.

[Hairy]

2 hours ago, ouzo said:

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

Mark it as last of old stock priced to go.

2 hours ago, bleedToWin said:

Obviously they should list them for R10.50.
And then when it's down to five on the shelf they should restock and reprice to R10.75

I say obviously because the retailer is a non-profit that sells products based on an intrinsic value calculated from production and distribution costs and the only sensible margins added is solely to cover retail costs. Right?

😂

2 hours ago, esCape-ist said:

You re price all stock at the new cost price + standard markup. Always.

 

When the input cost rises, you need to raise the price of old stock, because you need to replace that stock at the new cost price. Otherwise down the line there will need to be a doubled increase in price to make up losses on the new stock.

I certainly hope that same model is applied to goods that drop in price from the distributor ...... no wait, that would just not make financial sense would it.

[MORNE]

3 minutes ago, Hairy said:

I certainly hope that same model is applied to goods that drop in price from the distributor ...... no wait, that would just not make financial sense would it.

always an excuse to raise prices (R/$ etc etc) ...never the case when things supposedly become cheaper. Why? they already know you'll pay the new price for it...why should they bother lowering them. 

[ChrisF]

9 hours ago, ouzo said:

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

 

I have found Sludge at CWC with different prices on the shelf .... old bottles had the old price, new bottles had the new price ..... bit of fiddling and got a number of bottles at the old price.  They dont always inflate the old price ....

[throttles]

2 hours ago, ChrisF said:

 

I have found Sludge at CWC with different prices on the shelf .... old bottles had the old price, new bottles had the new price ..... bit of fiddling and got a number of bottles at the old price.  They dont always inflate the old price ....

I have experienced the same for some other items.. they’ll always honor the lower price.

glad to see they are at least consistently inconsistent with pricing! 👌🏻

Edited August 12, 2022 by throttles

[DieselnDust]

On 8/12/2022 at 9:52 AM, ouzo said:

not saying this is what happened here, but how do you propose a retailer handles the following situation ?

5 items left of product xyz. At the old cost price product xyz retails at R10.

New stock arrives, but at the new price xyz now needs to retail for R11. 

xyz supplier requires minimum of 10 items of xyz to be on the shelf at all times. But you cant have 5 of them prices at R10 at 5 at R11.

One of my LBS does jus that. They keep old stock at old prices until sold out. It' not a common practice