Why don't people not care if they are being ripped off?

[Wolf]

So I posted on another forum about the ridiculously high ice cream prices in some stores, like the one in Hermanus... R22.95 for a scoop of ice cream. It makes me angry when people overcharge so much, double the price than overseas, on locally produced stuff. There is absolutely no way to explain that price but a profit margin of I dunno how many 1000%.

I know it is my personal choice whether I buy it or not, which I of course didn't, but that's not the point. I just find it extremely rude to take people for fools and ripp them off like that and it makes me sick in my stomach.

[Dave A]

You don't think an open market will solve the problem in time? You're not the only one that isn't going to buy because of the price.

[Wolf]

You don't think an open market will solve the problem in time? You're not the only one that isn't going to buy because of the price.

I just hope so.

[adrianh]

Buy it, don't buy it - your choice. Better than the government prescribing the flavour and price.

[murdock]

i have learnt my leason with this...

a month ago i go to builder warehouse and purchase a drill bit sharpener...not knowing the price because i hadnt seen this product around...i saw the advertised price or so i thought of R300 got to the till to find my card had been charged R450 anyway i was in hurry and didnt want to make a fuss...a week later i go to builders express and notice the same product for sale...R399 so i phone the builders warehouse and they tell me to return to the store and they will refund me the balance...not worth my time to return...2 weeks later i go to emart and see the same product for R299 so you know what i did...purchased it at emart took it straight to builders warehouse and got a full refund.

so friday i needed some pegboard...i have all the supplers numbers on speed dial so i phone each supplier to check prices...

pegboard price 2400x1200 sheet

builders warehouse = R297.00 ex vat
emart = R330.00 inc vat
builders express = R219.00 inc vat

so i have to ask myself if builder warehouse and builders express are part of mass mart why the big price difference...and if builders warehouse is targeted at contractors why do trhey have a diy section...and if contractors are getting a 10 % discount as advertised in the new nandi drive builders warehouse if you open an account wouldnt it pay for to first check id builders express are not cheaper.

with the 10 % discount you are still paying over R300 for your goods...you woukld need to get a 30 - 40 % discount to compare to builders express.

the moral of the story...make sure you know your prices before you go shopping...no matter what you are buying.

and something else i dont feel embarressed to do anymore...is negotiate...i even if it makes me have to make 10 calls to get the price to what i feel is what i am prepared to pay...i saved myself over R900 the other day buying a machine after they had all given me their best price...i get the feeling the economy has got companies by the nuts....so now is a good time to buy stuff and the ineterest rate is down...i dont trust what anyone says about the interest rate...i am not prepared to take the chance of getting into debt...even if they say the interest rate will stay down....they said the world cup would boost the economy...well i am sure the striking is not doing the economy any good....shame poor matrics...at least they will have another excuse for the dismall pass rate this year...even though the matrics have had 6 months to prepare.

a 5500 watt generator during the load shedding would have cost you between R8000 and R12000...you can buy them for R2999.00 at the moment...a good tiome to invest in one...a tip just remeber to charge the battery if it is electric start...and if you plan on leaving it standing for a period of time drain the petrol.

[greghsa]

Guess this is one thing that the recession has taught us. A year or two ago, I would just shop because it was convenient. If builders was on my way home, I would stop there. This year, I question the expense first, and then surf, or phone for pricing, and then only when the price is right do I purchase. Long term I think it will benefit, as I am not such a compulsive spender anymore.

[Dave S]

pegboard price 2400x1200 sheet

builders warehouse = R297.00 ex vat
emart = R330.00 inc vat
builders express = R219.00 inc vat

And then there's Cashbuild = R199.95 excl.

It's now come to the stage where one must buy at many different suppliers, for instance, you want to build a dog kennel, buy the wood at Cashbuild, the nails at Builders warehouse, the hammer at Emart, the paint at Builders express, etc. But don't forget that all the riding is gonna cost in fuel and time.

This is, incidentally, the way my wife now purchases our monthly groceries, she actaully sits and plans her route to various stores so that she doesn't ride up and down and covers everything in one round-trip, her groceries budget is down by R400.00 to R500.00 per month and her fuel budget has only increased marginally, but it does take her a bit more time though, unfortunately not everyone lives in the close vicinity of seven major chain stores.

[Cream]

We went on Holiday recently and for the first time we visited uShaka Marine World with our baby girl. Next time I am hiding my own food and snacks, why should I pay R8 for a small pack of crisps and over R20 for a standard dinky hotdog.

At your statement Wolf "I know it is my personal choice whether I buy it or not" unfortunately we had no choice and that to me is wrong (my personal opinion).

[adrianh]

You always have a choice.

The word wrong is rather strange to use in this context. Is it wrong to charge as much as you can for a service? Why is it wrong to charge a premium on ice cream yet it is not wrong to sell our own services at a premium.

I am a capitalist. I will charge as high a price as the market will tolerate. When the market no longer tolerates the price, I lower the price or change my pricing stategy. I will pay a price that I feel to be fair, otherwise I will go without or negotiate.

Simple capitalist economics.

Life is one great big auction

[Wolf]

I agree with all of you. I'm glad I didn't buy it and I know I never will although I like ice cream.

Like Cream said, it get's worse if you don't have a choice. I always take my own food and drinks with to the movies, not only because of the price but also because I don't want to eat that stuff they are selling there.

All 3 expensive ice cream places closed down last year in and around Somerset West, I am just waiting for this one to be the next one.

The thing is that I am a conscious buyer who knows about prices. I don't have a problem paying R199.90 for 500ml of my favourite Austrian pumpkin seed oil. I know it is imported, I know it is special and I know it is very expensive overseas as well. For most of the goods there is a reason why it is expensive but I know when they add a ridiculous markup just to make a good living. But again, I am glad I have a choice and don't have to buy from them.

[BusFact]

I tend to agree with adrianh.

If we were really bing ripped off that much then there must be huge profits to make and any sensible soul would simply set up a competitive business next door.

R22.95 is a lot for an ice cream, but its winter and out of season. They're probably selling 10 ice creams a day if they're lucky. Wages, rent, etc still have to be paid. If its a prominent position, they're probably paying through the nose for rent.

I know its more complicated in that they should make it up in summer, but my point is essentially that running a business involves overheads too. The cost of the raw material (in this case ice cream itself) is often not the major factor in determining selling price. This is why so many people get vague answers on this forum when they ask for suggested mark ups as it always depends on your specific situation and multiple factors.

And if he is making a small fortune, then well done to him. Thats capitalism. Although greed can backfire in the long term.

The important thing to remember is that you most definitely do have a choice. If you don't like the price, then don't buy. Its a free market. It may be inconvenient, but then convenience comes at a price.

I also like how others have responded. They've chosen to shop around for the best deal. Again this is capitalism at work. Any company who wants to stay in business will watch their pricing in this sort of environment.

I only find it "rude" or "wrong" when there is no choice available to us. Such as in the case of monopolies of essential products (Telkom, Eskom, Arcelor...) or where legislation forces you to use a certain provider (normally government depts such as Cipro, municipalities, licence departments ....)

[AndyD]

I don't have a problem paying R199.90 for 500ml of my favourite Austrian pumpkin seed oil

If it's good for rubbing on and massaging the wife with then it's worth every cent.

R22.95 is a lot for an ice cream, but its winter and out of season. They're probably selling 10 ice creams a day if they're lucky. Wages, rent, etc still have to be paid. If its a prominent position, they're probably paying through the nose for rent.

I understand your thinking but I still don't see it making sense to fly in the face of basic economic principals. If the supply is constant and the demand is low then the price has to drop eventually. If it's a case of high running business costs and low sales then rather adapt the business model to provide an alternative service or sell something else that's in demand during the winter period.

[murdock]

or like comtest who have the sole agency in sa for fluke...you get your backside ripped so wide open you got to becareful you dont slip over the earth.

i still cant believe the difference in price...anyone know if a company has sole agency...can you import and sell as second hand?

[murdock]

i would have thought if you dropped the price because it is out of season you could get more sales...rather try move more product at smaller margin....increasing the price would just turn people away...quick way to close your bussiness.

like now if i had to increase my price with the ecomony the way it is would be a dumb move...customers are lazy and if happy will what you are offering them they wont loo around...but if i had to increase my price they would look at getting quotes...one lower in these times would mean i loose the customer for a couple of months until the other company messes up or put his price up...this is one od the key factors of staying in bussiness for a long time...just keep the customers happy dont try get rich in one job...the price consistancy will eventually pay off...sometimes i dont increase my rates for 2 or 3 years and i make my customers away of the fact every year.

[wynn]

At 'toysRus" a bubble wand in purple or green cost R20
We purchased two, a purple and green one for the neefies, then realised that the niggie would also require one went back and priced a pink one from 'hello kitty' R70
So now the neefies are each getting a green one and the niggie is getting a purple one, 'hello kitty' is still on the shelf!