Friday, February 21, 2014

COUNTDOWN TO FUTILITY

 Labour leader in waiting has been attempting to raise his profile as Cunliffe sinks beneath the waves of mediocrity, by raising matters around Countdowns business practices over supply contracts.

It happens worldwide Tugger in all markets.

I grew Malting barley under contract to the Canterbury Malting Company in the 1970s.
They were the only malting barley producers and used their dominant position without compunction.

If supplies were short damaged grain didn't matter, a surplus and they would reject thousands of tons of perfect sample testing grain.
Malting barley was often the best price on offer, should feed barley prices head off malt price then the cnuts would buy on the contract and sell on at the higher price to the feed market.

The contracts only worked for the malt company and they were ruthless.

Same with lamb, forget the machinations of the unions, the price setters, ie the company working in concert with each other would manipulate the "schedule" around their benefits and screw the farmers fighting grading, the weather, and supply dynamics.

Someone had a crybaby piece on vehicle insurance, the big two insurers and their relationships around panel beaters. If the price wont work for the dent menders tell the assessors to naff off, they need you as much as you need them.

Its the market stupid and tugger will still look ordinary when com com answers the questions re Progressives tactics and the outcome may be a rebuke but it wont matter.
We all want the best deal and anyone who says otherwise is being disingenuous. Why else are savvy buyers of stuff buying on the net from offshore.

Fourthform Commercial practice;
Buy for less than saleprice  = profit,
Sell good value with service = happy customer,
Customer not happy no business,
 If sale does not generate profit business goes broke.
Pretty simple really.

6 comments:

Edward the Confessor said...

Your summary "Fourthform Commercial practice" is irrelevant where you have a cosy duopoly screwing both the suppliers and the consumers. Why is it we pay more for groceries than both the Australians and the British do you think, and how does that fit into your "Fourthform Commercial practice"?

gravedodger said...

Easy actually, NZ is a very small market in world terms, Australia is more than 5 times our population and NSW, Victoria and Queensland are all individually larger by Population.
Anyone with a smigeon of commercial connection would understand those simple tenets of commerce are basic to what Tugger is attempting to attack.
Jesus wept even large unions wield their monopolistic power ruthlessly and as for the current darling of the socialists, the obese Kraut from Coatsville, he apparently has little regard for the commercial niceties for the little people he has drawn into his web of deception as clients and now creditors.

So easy to call a co-operative based franchise type New Zealand owned grocery chain and an Australian owned conglomerate a 'cosy duopoly' when the industry is so small and its market is even smaller in world terms.
Have you seen any of the "stickman" adverts for Pak n Save, on price comparisons, not a lot of best mateship there.
The reality is that it is what it is and the Wharehouse foray into the grocery market failed for good market reasons of supply, demand, scale, and a very high commercial barrier to entry of adequate premises and the accompanying carpark requirements.

There has been talk, I hope satiracal, on a government move to give choice by creating "kiwimarket", positively scary.
Read anything on Venezuela lately as they come to terms with Chavez dying and his successor failing. That oil rich country is totally fucked and those responsible are just another bunch of deluded socialists running out of OPMs.

If you get a chance sometime, study how a market actually functions, particularly as Countdown and Foodstuffs operate as middle men.
Of course they will be guilty of what you shill about, "screwing" suppliers and consumers, but if you are correct and I doubt you are, suppliers who cannot sustain supply will stop growing, processing and creating and customers who cant afford to buy, wont.
Its the market and again if you were correct in your support of Tuggers brain fart, the Wharehouse attempt to enter the contest would have created an equally cosy threesome.

Instead we only have Farmers markets, "Bin IN" and other small competitors to keep the big boys honest. Of course so many of the idle stupid buy their junk food from corner dairies and that is a bigger rip off than Countdown will ever be. Sheesh many of those corner shops scour the supermarkets for supplies on specials which are cheaper than wholesalers can offer.

BTW just as an aside we, all 500 of us plus visitors and tourists enjoy great service from Julia at our local four square, at prices that on first glance seem a little eyewatering but compared to a round trip of 150k to Halswell New World, she delivers an amazing seven day service, a comprehensive range and quality. I have a small wager Julia will eventually be the proud and deserved owner of a New World in one of the mushrooming burbs to the west of the Village of the Damned, but not yet I hope.

Edward the Confessor said...

"NZ is a very small market in world terms, Australia is more than 5 times our population and NSW, Victoria and Queensland are all individually larger by Population."

Why is that relevant here? Costs of production are lower here and most product is locally sourced. Even our wine is cheaper over there. The reason we get screwed on price at both ends is a lack of competition in the supermarket sector, plain and simple. Two major players gang up on both the suppliers and the consumer.

BTW, why are you so verbose?

Adolf Fiinkensein said...

BTW why are you such a prick?

gravedodger said...

Confuser's task here is to counter the message I guess.

The poor bastard clearly has no understanding of such things as; economy of scale, efficiency, loss leaders, spoilage, service, profit and loss, independent partners in a co-operative or commercial practice.

Possibly his only venture into the world of commerce could be delivering leaflets to mail boxes for an ice cream.

Edward the Confessor said...

Yeah, you're good at vomiting words into your PC in semi-random order, but you really don't know much about the supermarket sector, logistics, or economics in general do you guy? Stop embarrassing yourself.