18 replies to this topic

[chimp]

Here's a one to get the juices flowing.......

What are your thoughts on suppliers selling pre 2009 stock (bought before the 2009 increases) at the new, much increased 2009 prices?

Are such suppliers simply cashing in on the upturn in prices, or is it quite reasonable to expect consumers to pay todays prices for goods bought today, irrespective of what they were cost the supplier in the first place?

A hypothetical example - A supplier selling old stock at below current market price runs the risk of compromising his new stock prices; on the other hand, if the stock is a few years old and now obsolete is it reasonable for him to sell the product at a new imaginary 2009 price?

I'm not advocating either decision by raising this point, but I'm sure many consumers and suppliers may share different views on it.

Edited by chimp, 28 August 2009 - 05:50 PM.

[David]

Interesting topic for discussion! I have been thinking about this too.

I know this is a weak answer- but at the end of the day, business is business. If people are happy with prices, they will pay them, and if not they won't. Fireworks are a luxury item- no-one needs fireworks- as such a sensible retailer will gauge his prices based on what he feels his customers will be happy to pay.

[David]

on the other hand, if the stock is a few years old and now obsolete is it reasonable for him to sell the product at a new imaginary 2009 price?

I think this depends on performance. If a firework that sold for (eg) £9.99 in 2005 is now as good as a similar item that sells for £15.99, that it wouldn't be unreasonable to sell it at that price.


However, yeah- if shops are simply offloading old rubbish at "2009 prices" then shame on them.

[Spyrotechnics]

if stock is a few years old and now obsolete then perhaps we can sell it at a premium!!

[David]

if stock is a few years old and now obsolete then perhaps we can sell it at a premium!!

Well, I reckon if a cartoon (or whatever they came in back then) of old, unopened British selection boxes turned up at the back of a warehouse or somewhere, it would be worth it's weight in gold!

[Spyrotechnics]

well if the price went up on petrol (when not if) do you think Tesco sell what they have at the previous price before passing on the price hike?

[David]

It's a two way street, of course- if a shop had a large stock of something on which the value had dropped (electrical/computing equiptment for example) then they would be obliged to drop their prices, regardless of what they paid originally, in order to get custom.

It's possible (and I am only speculating here - I may simply be wrong) that some of the firework sellers this year who have raised prices significantly might be obliged to drop them if sales in the run up to bonfire night are poor.

[Spyrotechnics]

I think you will find that sellers have in the main increased prices if their trade prices have increased.

We can speculate on what may or may not happen with prices and the market till the cows come home, fact is we are in the retail business to make money, if the RRP rises on stock we have already bought then we have choices, depending on how we want to market the products - the same as any other business does.

[Mortartube]

It is not unreasonable to sell an item at the increased price, as it will cost more to replace it with a similar item when you come to buy new stock, and a business needs that cash flow to restock.

[Mixologist]

It is not unreasonable to sell an item at the increased price, as it will cost more to replace it with a similar item when you come to buy new stock, and a business needs that cash flow to restock.

I was wondering if anyone else would say this!

If i paid £5 last year retail £10

And it is now £13 retail and £8 to re - stock on, i`m not going to sell it at £10 am i?! Plus the retialer has had the cost of cash tied up in stock for the year had to pay licence fees etc etc.

if it was an `obsolete product` that i did not have to restock on then i would probably sell it at its old price as i would feel im still making a fair return.

[starseeker]

if stock is a few years old and now obsolete then perhaps we can sell it at a premium!!

Old stock equals more flash =bigger bang,i would pay more!

[David]

It is not unreasonable to sell an item at the increased price, as it will cost more to replace it with a similar item when you come to buy new stock, and a business needs that cash flow to restock.

True, but to generate cash flow the retailer needs to be able to sell the item in the first place, of course.

Personally, fireworks that have gone up in price significantly from last year are of little appeal- others may simply not notice price rises, or be happy to pay them. It would be interesting to know what people think about this (consumers) - are you happy to pay higher prices this year for the same item?

Edited by David, 31 August 2009 - 10:20 AM.

[Mortartube]

That's where the art of the businessman comes in. Getting the maximum return on an item. It's not always an easy act to pull off.

I don't buy a great deal, as I often get stuff in exchange for jobs around November when I work for a particular firework company. I also bought a fair bit of reduced stuff in January this year, so apart from a couple of cakes this year. I am sorted.

True, but to generate cash flow the retailer needs to be able to sell the item in the first place, of course.

Personally, fireworks that have gone up in price significantly from last year are of little appeal- others may simply not notice price rises, or be happy to pay them. It would be interesting to know what people think about this (consumers) - are you happy to pay higher prices this year for the same item?

Edited by Mortartube, 31 August 2009 - 11:13 AM.

[David]

I also bought a fair bit of reduced stuff in January this year, so apart from a couple of cakes this year. I am sorted.

If you don't mind me asking, where from?

[Spyrotechnics]

To be fair David the vast majority of consumers buy fireworks once a year and will have little/no idea of the individual items they purchased the year previously

(they will of course remember wether the fireworks in general were "good" and if they felt they got good value for money, it's why "we" get loyal customers)