ChatterBank21 mins ago
Milk At Morrsons
Looks like all the protesting has achieved something after all :::::
http://
Farmers ....................10 points
Greedy supermarket....0 points
http://
Farmers ....................10 points
Greedy supermarket....0 points
Answers
I would buy the farmers milk !! don't mind paying extra to protect the future of our dairy herds..
17:04 Tue 11th Aug 2015
I am not sure the supermarkets are being 'greedy'.
As a business, they have a duty to their shareholders to make as much profit as possible.
There is an age-old practice in retailing called 'loss-leading', where a business will sell a popular commodity at a loss in order to draw incustomers, who will then by high-profit stock which will offset the loss incurred.
That has gone on for a very long time - all retailers do it, and the major supermarket chains have the clout to be able to really hammer down the price of their chosen loss-leaders - and a staple like milk is an obvious product to choose for this practice.
I suspect that they have done some rapid opinion-testing, and found that the customer will bear the additional cost, and their minor profit loss is offset by a mass of free advertising through the media as their campaign is rolled out.
Morrisons et al do not get to their level by not understanding how retailing - and image - work.
As a business, they have a duty to their shareholders to make as much profit as possible.
There is an age-old practice in retailing called 'loss-leading', where a business will sell a popular commodity at a loss in order to draw incustomers, who will then by high-profit stock which will offset the loss incurred.
That has gone on for a very long time - all retailers do it, and the major supermarket chains have the clout to be able to really hammer down the price of their chosen loss-leaders - and a staple like milk is an obvious product to choose for this practice.
I suspect that they have done some rapid opinion-testing, and found that the customer will bear the additional cost, and their minor profit loss is offset by a mass of free advertising through the media as their campaign is rolled out.
Morrisons et al do not get to their level by not understanding how retailing - and image - work.
As far as I can tell from the article some other supermarkets have been doing this for a while:
"The NFU said that currently Waitrose, Marks & Spencer, Tesco, Sainsbury's and the Co-op have arrangements where a farmer is paid a price above the cost of production for milk. Asda, Lidl and Aldi currently do not offer such deals to farmers."
"The NFU said that currently Waitrose, Marks & Spencer, Tesco, Sainsbury's and the Co-op have arrangements where a farmer is paid a price above the cost of production for milk. Asda, Lidl and Aldi currently do not offer such deals to farmers."
I'm not great with math so please excuse me if I am wrong.
4 pints = 2.27 litres, currently being sold at 89p in Morrisons, which equals 39p per litre. It costs 32p to produce each litre, leaving a profit of 7p to the farmer (although I doubt they'll see all of that).
Morrisons add 23p to the cost. So 2.27 litres = 49pence per litre to the customer. The farmer gets 10pence, the other 7pence goes to the supermarkets pocket.
I'd say the winners are the Supermarkets trying to attract new or straying conscientious buyers, the novelty of which will wear off after a while once people realise they can buy milk cheaper elsewhere. Farmers advice: Don't have a cow, man
4 pints = 2.27 litres, currently being sold at 89p in Morrisons, which equals 39p per litre. It costs 32p to produce each litre, leaving a profit of 7p to the farmer (although I doubt they'll see all of that).
Morrisons add 23p to the cost. So 2.27 litres = 49pence per litre to the customer. The farmer gets 10pence, the other 7pence goes to the supermarkets pocket.
I'd say the winners are the Supermarkets trying to attract new or straying conscientious buyers, the novelty of which will wear off after a while once people realise they can buy milk cheaper elsewhere. Farmers advice: Don't have a cow, man
They have a responsibility to shareholders, but not just to them. There are moral responsibilities to not to use what power they have to force a price so low that the supplier gets screwed. But of course the system almost forces it if there are not legal limitations; for if your direct rivals do something immoral in order to benefit you feel obliged to do so too.
'Greedy supermarket'? At least Morrisons have been proactive about the concerns. What about all the other supermarket chains? They discount/subsidise their milk as well and don't appear to be doing anything along these lines.
I know I work for Morrisons, albeit as a mere shelf stacker, so am not saying it as a loyal employee, but I feel they should be commended for acting on the matter.
I know I work for Morrisons, albeit as a mere shelf stacker, so am not saying it as a loyal employee, but I feel they should be commended for acting on the matter.
Maybe Morrisons don't fancy a visit similar to what ASDA had.
Yes I would pay the extra 10p.
http://
Yes I would pay the extra 10p.
http://
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