Why are stores owned by the same companies charging different prices?
“Prices are often important signals of how **competition **is working.”
Um, what competition if we’re talking about stores owned by the same company? Competing against itself?
A profit driven company will always sell a product for as much as they can. Costs doesn’t factor into price at all.
You can find the same product for different prices in the same fucking Zehrs. There is a section of the store clearly intended for immigrants, and the items are cheaper there. Save a few bucks on a tub of cashews.
I needed a few cinnamon sticks. Went to Save On Foods.
Spice aisle: small spice jar with maybe 8 sticks in it. $6.99.
Ethnic food aisle: 4lb bag with like 100 sticks: $4.00.
It’s exhausting.
A lot of that is for to the distributor.
What people don’t realize is that grocery stores don’t really order/stock everything themselves. A lot of product is brought in by vendors who bought shelf space. The big guys, like Nabisco, coke, Pepsi, Frito lay, Bimbo, etc., all order and stock their own stuff.
They might be getting standard spices from over distributor and the Mexican spices from another, etc.
Because of third-degree price discrimination (not discrimination with the negative connotation).
As with all pricing: because they can.
Couldn’t this just be used as an avoidance tactic? Like saying, “see we are trying to keep the prices low, by offering competitive prices in different stores”. All the while raising the base price of the item in all stores to trick people into thinking they are getting a good deal.
Do you want to go to multiple stores or just pay for convenience? That’s how they over charge. Best buy sells 40 dollar HDMI cables.
Shopping around can save a lot of money on groceries. It wasn’t so bad when all the stores price matched, since this could simply involve opening an app to show you all the flyers and highlighting the ones you want to price match at a single store.
Now, hardly any do price matching, so that’s one more way they’ve found to screw us over.
I mean I work in retail. Prices are different based on region. If a local competitor has a better price, then they’ll try to match it out beat it. That’s basically it.
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It’s called you make a $0.10 jar of sauce, sell it for $5 at no frills and $7 at loblaws.
Either way, you’re making hella profit, and you know people at loblaws will buy it for $7 because they are rich and don’t want to have to go to a second store.
Just like how gas is cheaper in unsafe areas. They know the people around aren’t rich, which is usually why it’s unsafe, and that the actual rich people would rather pay more to stay in the safe area.
Where can I find this correlation on cheap gas prices and low income areas? Any published papers?
Outside is the best place to find it.
