In my years I've noticed that the truly great sale items have dwindled (used to have 10 for $10 shells and cheese, 64 ounce apple juice, 8 oz blocks of cheese, half gallon OJ etc). I get that the cost has increased but those sort of awesome sale prices would bring in customers! We do occasionally see 10 for 10 on things like blocks of cream cheese among other things, but what happened to the awesome sale on the aforementioned items?
On a similar note, If an item has a store cost of say $0.65, and you sell maybe 20 units a week at $1 (10 for $10 for a profit of $0.35 each item or $7 total) but when the price goes to say $0.79 (which is only a profit of $0.14 BUT you sell 100 units at that price (total profit $14), what logic do they use to continue to do the first scenario? I'd rather make a nickel profit on 1,000 units than make 25 cents and only sell 100. I just don't get their logic. Those aren't actual items, they're just numbers I came up with but we all see these things on a daily basis. Heck as a customer, I find myself passing on purchasing items because the prices have exceeded what I'm willing to pay for them.
Specific product example. We have a product called Graeters icecream that retails at our store for like $12-15 for a quart (!) and it doesn't sell at all. Eventually we have to mark it down to a still unreasonable price then it *might* move a couple of units before going outdated and becoming a loss. I haven't checked the store cost on this item lately but I think it profited a few dollars per item sold. Why not lower the price, sell a few more units and actually make some money on an item instead of having to stock it (it's in the set!!) and let it go outdated and take a loss every time?
It's because all the coordinators in Cincy are stupid as hell. They have this unrealistic expectation that all bakery departments are going to be set EXACTLY the same. Last i checked, my little town is not going to sell as much of, or even sell at all, the same exact items at the same pace as a marketplace in Cincinnati!
The ice cream is the same way. Because it sells in some rich area suburb of Cincy, they think it MUST sell everywhere.
The ice cream is the same way. Because it sells in some rich area suburb of Cincy, they think it MUST sell everywhere.
I may bring that up to our zone manager next time I see her. It's a full shelf of different flavors/sizes, none of which sell. Seems like the more logical thing would be to use that space for items that DO sell. but what do I know, I just work here
On a similar note, If an item has a store cost of say $0.65, and you sell maybe 20 units a week at $1 (10 for $10 for a profit of $0.35 each item or $7 total) but when the price goes to say $0.79 (which is only a profit of $0.14 BUT you sell 100 units at that price (total profit $14), what logic do they use to continue to do the first scenario? I'd rather make a nickel profit on 1,000 units than make 25 cents and only sell 100. I just don't get their logic. Those aren't actual items, they're just numbers I came up with but we all see these things on a daily basis. Heck as a customer, I find myself passing on purchasing items because the prices have exceeded what I'm willing to pay for them.
Maybe it costs less to stock 100 units than 1000 units?
In my years I've noticed that the truly great sale items have dwindled (used to have 10 for $10 shells and cheese, 64 ounce apple juice, 8 oz blocks of cheese, half gallon OJ etc). I get that the cost has increased but those sort of awesome sale prices would bring in customers! We do occasionally see 10 for 10 on things like blocks of cream cheese among other things, but what happened to the awesome sale on the aforementioned items?
On a similar note, If an item has a store cost of say $0.65, and you sell maybe 20 units a week at $1 (10 for $10 for a profit of $0.35 each item or $7 total) but when the price goes to say $0.79 (which is only a profit of $0.14 BUT you sell 100 units at that price (total profit $14), what logic do they use to continue to do the first scenario? I'd rather make a nickel profit on 1,000 units than make 25 cents and only sell 100. I just don't get their logic. Those aren't actual items, they're just numbers I came up with but we all see these things on a daily basis. Heck as a customer, I find myself passing on purchasing items because the prices have exceeded what I'm willing to pay for them.
Specific product example. We have a product called Graeters icecream that retails at our store for like $12-15 for a quart (!) and it doesn't sell at all. Eventually we have to mark it down to a still unreasonable price then it *might* move a couple of units before going outdated and becoming a loss. I haven't checked the store cost on this item lately but I think it profited a few dollars per item sold. Why not lower the price, sell a few more units and actually make some money on an item instead of having to stock it (it's in the set!!) and let it go outdated and take a loss every time?
The good deals are there it's just not particularly on the items you buy. Recently we've been having great deals on Milk and this has been going on for a few years now. We've also had great prices on oscar mayer products.
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You have to take into account profit after labor. Stocking and ordering 1,000 units vs 100 units can be more than half the profit so it's not a surprise if, as a company, you profit less from more.
The reason you have those expensive flavors of different ice cream are two fold.
1) Selection. A customer from out of town may come to visit your small town Kroger and want their favorite ice cream. If you have it they are happy. If you don't they aren't. Having some items with limited sell value also cuts the cost of labor on items. It's weird.
2) Corporate deals. Some companies actually cut deals on their products, or just simply pay for Kroger to carry them. All this goes on behind the scenes.
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Would you like fries with th... I mean, your milk in a bag?
good points, I forgot all about the costs of labor, transportation, etc. Seems like a movement of zero doesn't justify having a product, but I guess if it makes one customer happy then it's all good:)
good points, I forgot all about the costs of labor, transportation, etc. Seems like a movement of zero doesn't justify having a product, but I guess if it makes one customer happy then it's all good:)
When we had our remodel, a lot of items were removed to make space for new things and the expanded natural foods. Items that we barely ever sold 1 or 2 of, I heard complaints about not having after the remodel.
I can honestly say though, the frozen creamer(in the breakfast section, in the small carton) we have literally sold 0 units in 2 years. There isn't even an expiration date on the item, so once a year we just throw them away and order a new case, and the cycle repeats.
good points, I forgot all about the costs of labor, transportation, etc. Seems like a movement of zero doesn't justify having a product, but I guess if it makes one customer happy then it's all good:)
It's true that having an item like that seems redundant, but it also helps the store "look full".
Yes, I understand that my logic is flawed but that's the only thing I can think of for having an item like that around for more than a year. It's probably something your coordinator (the person above your manager) should be told about, several times. Leave that decision to them. It's what they are paid to do! :)
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Would you like fries with th... I mean, your milk in a bag?
