A few days ago I wrote a blog about the new Uniliver products such as Surf and Persil, complaining that they have just launched new super concentrated products and that at a local Pak N Save store where they used to special the product at prices ranging from $1.69 to $1.89 a pack and were promoting the new pack which has the same washing power as the old one, but their new special was 2 packs for $5, a premium of over 25%.
At the time I wrote the blog, I also contacted Unilever via their website and asked for clarification of this and an explanation. Initially I got a very nice email from their Consumer Relationship Consultant, ellaborating on the wonderful properties of the product but bypassing the question on price. I replied to say that I agree, their products are great products and that being more biodegradeable was an excellent feature. The quality was never in question and I have to say that their website is excellent, full of great information about how to use their products in a variety or circumstances.
I then got another response saying that they haven’t changed the product pricing from the old one to the new concentrate and inviting me to call them with any further questions. I did call the Consumer Relationship Consultant who was open and diplomatic, explaining that they have no control over any pricing other than setting the Recommended Retail Price (RRP). That is in fact true and I should have realised that to start with. It was in fact Pak N Save who were manipulating the pricing.
I’m relieved to hear that, its just a shame that the promo person in the supermarket didn’t understand the question to start with. So what was happening? Basically the Supermarket were hoodwinking their customers by in effect saying you could buy 1 of the old product for $1.89 or 2 of the new products, which are the exact equivalent of the old product from a use per pack perspective for more then 25% more.
This is not an unusual trick in a supermarket. They have lots of ways to make you think you are getting a bargain. A common one is to haphazardly throw tins or other containers into an end aisle dump bin to make it look like the products are on sale, but still charge normal full retail. This is all part of the tricks of the trade. On the other hand they also have their loss leaders, where they sell product at very low prices, often below their cost to the supermarket, to get people to come in and combine those with other more profitable products for the grocery spend.
In this case, they were just a bit silly and patronising of their customers who are often quite astute. Their timing was very poor and it has reflected poorly on them. On the other hand Pak N save are often cited as the best value for money grocery chain in the country. So the lesson is, be alert and watch for good deals and be aware of items that look good but aren’t. In today’s tough times, they would have done better to keep the price as it was and keep customers trust.
While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course http://luigicappel.wordpress.com.
Thanks so much for your support:)