Racing to the Bottom

[mike calabrese]

Why not it works for Walmart
calabrese55

[Stan Calow]

A couple I know buys a new gas grill every two to three years for $200 to $300. They don't understand a quality grill for two or three times as much would cost less in the long rune.

Or maybe they do know, just only have $200 in hand to spend and need a grill. That's the dilemma making choices that many people have.

[Malcolm McLeod]

Sadly, most people won't. Or can't afford to. Price is the biggest criteria most consumers base decisions on, whether it's airline tickets or underwear. And customers show no loyalty if there's a price difference. Companies priority is to make money for shareholders, not make good long-term customer relationships.

"The other thing I hate is shrinkflation for food. Just charge me more if you need to, but keep the quantity the same. Some food will shrink and shrink in quantity until the manufacturer comes out with a "new" larger size that costs more and is the same quantity it used to be."

I was just opening a new package of Oreos, and noticing their tiny size compared to the old days. Again, people only look at the price, and most people cant do the math to realize that there's less product. A pound of bacon is now 12 ounces, and a pound of coffee is 13 or less.

A bit of anecdotal back-up….
My grandfather owned/ran a grocery store for virtually his entire life. He sold on credit, delivered and put ice cream in the freezer, and had a custom butcher shop in his ~2000sqft store. Known customers would run in, grab 3 cans of beans and a bag of chips, hold them up for the clerk to see as they ran out, and yell “Add them to my bill!”

The same customers (and his neighbors) would complain bitterly that his green peas were 2 cents higher than the Piggly Wiggly 4 miles away.

Sadly most people WILL… ignore value and convenience to save 50 cents.

[Bruce Wrenn]

Every week, I use a bunch of Blue Bonnet stick margarine making biscuits (2 1/4 sticks.) Last year was paying $1.69 for two pound box ( 8 sticks,) now am paying $1.69 for a one pound box ( 4 sticks.) When Aldi's puts their in store brand of butter on sale, it's less than a quarter difference between margarine and butter. I shop both price and quality. For my biscuits, there are only three brands of self rising flour that I will use. Tried the "store brands" but they didn't meet my standards. Which of the three brands I use is dependent upon which brand is on sale. Local Food Lion carries three different prices of milk, all of which are put up by same processing plant. If you are a roll sausage lover, try Aldi's Appleton Farms sausage. In our market, it sells for $2.29 a roll (16 oz.) I will put it up against any of the premium brands. As a store, Kroger ( no longer in our market area) has the best rated store brands, year after year.

[mike calabrese]

A bit of anecdotal back-up….
My grandfather owned/ran a grocery store for virtually his entire life. He sold on credit, delivered and put ice cream in the freezer, and had a custom butcher shop in his ~2000sqft store. Known customers would run in, grab 3 cans of beans and a bag of chips, hold them up for the clerk to see as they ran out, and yell “Add them to my bill!”

The same customers (and his neighbors) would complain bitterly that his green peas were 2 cents higher than the Piggly Wiggly 4 miles away.

Sadly most people WILL… ignore value and convenience to save 50 cents.

Malcolm I cringed when I read your post . My family ran an IGA grocery store . I started working there when I was 7 helping my dad and uncle in the store. The customer tale you tell was exactly the same in our situation.
The store and the house I grew up in were all in the same building. I could walk through a door in our kitchen and be in a fully stocked grocery store the store. The customers we had were mostly good to a point and all neighbors . The village population back then was way less than 8,000 . Back then there were the blue laws , stores could not be open on Sunday period.
As we lived adjacent to the store and everyone knew this, folks would come anytime on Sunday and knock on our house door to get a couple of items they needed. Interruptions all day and naturally all on the tab because the store was not open. When the family finally stopped this Sunday back door donation thing the customers were brutal to us.
The store after 31 years closed in 1964.

Similar situation we have a indian tribe in our town they have a government recognized reservation a convenience store , gas station and a couple of small casinos. There are folks here in town that complain because the tribe pays no taxes anywhere even off the reservation. These same folks can be seen doing business with the tribe for their cheaper cigarettes , auto gas and the slot machines. Talk about the race to the bottom .
calabrese55

[Bill Dufour]

I bet the tribe would be happy to pay taxes if those complainers gave them back all their real estate for free. Or maybe the tribe could pay the taxes by giving back rights to property in town like for a million dollar tax bill we give up all rights to the land under road around the the grade school.
Bill D

[Malcolm McLeod]

I bet the tribe would be happy to pay taxes if those complainers gave them back all their real estate for free. Or maybe the tribe could pay the taxes by giving back rights to property in town like for a million dollar tax bill we give up all rights to the land under road around the the grade school.
Bill D

Relatively certain Mr. Calabrese took issue with 'folks', not 'tribe'. But maybe that is just my bias in reading?

[mike calabrese]

Relatively certain Mr. Calabrese took issue with 'folks', not 'tribe'. But maybe that is just my bias in reading?

Thanks Malcolm you are correct I have no issues with the tribe. The pale faces (I am one of Italian heritage) of many years ago screwed the Native Americans out of their lands.
My point is, was, you can't have it both ways today, you can't complain the no tax thing all the while you are in line at their stores to save a couple of pale face $.
Find a side of the fence you like and stay there.
calabrese55

[Rod Sheridan]

Jim, my Lee Valley shut off valve is around 10 years old and works as well as when it was new.

It also sits outside winter and summer.

I find it’s always worth buying quality items……Regards, Rod.

[Jim Koepke]

Jim, my Lee Valley shut off valve is around 10 years old and works as well as when it was new.

It also sits outside winter and summer.

I find it’s always worth buying quality items……Regards, Rod.

Thanks Rod, I am so far happy with mine and wish I had purchased one or two more. Oh well, next order may be soon.

jtk

[Alex Zeller]

Reading an article in the business section this morning and came across this line, "But for many companies, the cost-cutting is worth a drop in quality."

OMG! That seems to be the mission statement of too many large businesses.

Do they even consider what customers will think about dropping quality to increase profit?

jtk

It's not always to increase profit. In fact it's usually to keep the product the same price and not pass on other expenses that have increased. For example, the cost of labor has gone up so find easier ways or reducing parts means less labor to assemble something. Of course there are limits which is in part why we have inflation.

[Bruce Wrenn]

It's not always to increase profit. In fact it's usually to keep the product the same price and not pass on other expenses that have increased. For example, the cost of labor has gone up so find easier ways or reducing parts means less labor to assemble something. Of course there are limits which is in part why we have inflation.

50+ years ago, MAGNA made Sears' rototillers. The side of the gear case was held on with high strength bolts, with SPECIAL hardened lock washers. Some bean counter decided to use Loctite instead of lock washers to save a couple pennies per tiller. Failures started with in months (under warranty.) Didn't take long for the special hardened lock washers to return. Quality is like buying oats. If you want nice fresh clean oats, then you have to pay. Those that have already been thru the horse are much cheaper!