Monday November 23, 2009 12:48 AM ET
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10 Things Supermarkets Won't Tell You
What happens when your supermarket feels the pinch?
 
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niitesh SmartMoney Insiders
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Posted by: wemeier
I also work for a supermarket chain and I think this article unfairly targets supermarkets.

The article talks about supermarkets not lowering prices when the manufacturer downsizes their products. We can't lower our prices because the manufacturers didn't lower their costs!

The article also talks about raising prices when the customer is less likely to notice, such as on slow-moving or infrequently purchased items. As the article states, supermarkets work off of a very slim profit margin. If we lower the price on items that many people buy (benefiting the most customers) we have to raise prices on something else. It costs us more money to stock a slow-moving item than it does to stock a fast-moving item because we have to pay the manufacturer for the product right away, but we don't get paid by the customer for it right away. If the customer wants that variety, they have to be willing to pay more for it.

Also, supermarkets have no control over the nutrit...(Read more of this comment)
Posted by: aporpoise
I worked for a major supermarket. At that time 1,000 items had their prices increased on Friday and lowered on Monday.
Also manufactors pay for placement on shelves. Eyelevel is more costly then floor or top shelves.

Where I live and worked in an area where Foster Farm chickens were guaranteed fresh. After two days and the FF chicken, or parts has not sold and is still sitting in the case, they are pulled and the little weight, price stckers are covered with a new sticker with less of a price per pound. The new stickers also have the store's logo and not FF' eventhough the bag or plastic wrap does.
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