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The Forum > General Discussion > Massive Price Rip-off

Massive Price Rip-off

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The expose last night by Today Tonight on Channel 7 regarding the much cheaper prices paid for "Aussie Made" grocery items by New Zealand consumers, as compared to the prices that we here in Australia pay for the same "Aussie Made" grocery items, presents undisputable proof that we the gullible consumers are being ripped-off by our major retailers by exercising our "assumed" loyalty of buying "Aussie Made".

Some of these grocery items were around 50% cheaper, after being shipped to New Zealand and adjusted for the difference in the dollar.

This report is based only on grocery items, so one could ask how a similar comparison in pricing works out in relation to Meat, Fruit and Vegetable pricing?

There is no doubt that we the consumers here are being taken for a ride by our producers, wholesalers, retailers and Governments who turn a blind eye to it all, whilst we are constantly being encouraged to buy only "Aussie Made" produce!

We need some long overdue honesty from both the Food Marketing organizations and Government to stop this commodity pricing spiral, which is totally unnecessary and simply puts more profit into their pockets at the expense of the gullible public.

Let us have a long overdue Royal Commission into food pricing, or at least a Senate Select Commitee investigation into this predatory pricing "industry" before we the consumers all go broke?

Anyone wanting fine detail on this subject can go to the "Today Tonight" website and check last night`s report.
Posted by Crackcup, Tuesday, 23 June 2009 9:16:49 AM
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There is a simple answer to this. Boycott Coles and Woolies until they get the message. I can do shopping at sensibly priced groceries and fish/meat shops. The quality of veggies at both Coles and Woolies near me is generally awful.

We are dealing with logistics companies - the product happens to be food and household stuff.

BOYCOTT!!
Posted by renew, Tuesday, 23 June 2009 10:20:12 AM
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Hey Crackup, I wish something would be done. I was really shocked at how expensive food was here after moving from NZ. I sort of grew up where Kiwi’s came to Aussie for shopping holidays, no wonder that stopped – everything is more expensive.

Even little things like in NZ you buy a personalized number plate for your car and that is the end of it, here in NSW you have to pay every year to retain it.

Insurance is more expensive so I have kept my Life Insurance in NZ rather than paying for one here. Public transport in NZ is cheaper as well. Clothes seem a similar price.

I guess your pensions are so much larger in Aussie compared to across the ditch to make up for how expensive it is to live here?
Posted by The Pied Piper, Tuesday, 23 June 2009 10:23:40 AM
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ThePiedPiper:

One important fact that I omitted to mention in regard to this subject of food pricing comparisons, ( simply because most of the community are just a touch parochial about the comparison with other countries ), is that the majority of foodstuffs, fruit and vegetables that are produced in New Zealand ARE of a much higher quality than the local Aussie product!

I know that this is a hard pill for the Australian consumers to swallow, but unforunately it is fact, that anyone who has spent time there will acknowledge to be true!

This "quality" fact then is ever the more reason why Aussies should be paying even less at the check-out than their Kiwi counterpart!
Posted by Crackcup, Tuesday, 23 June 2009 10:55:21 AM
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So a question. If Coles and Woolies are doing the ripping off,
why does it not show in their Annual General Reports as extra
profits? Last time I checked, Coles earned around 2.5c in the
Dollar as profit, Woolies around 4c-5c.

The problem always comes back to costs all along the chain.
Rents, electricity, wages, payroll tax, superannuation, holiday
leave loading, overtime, workers comp, etc, all have to be paid for,
to everyone from the checkout chicks, the cleaners, the shelf
stackers, the truckies, security guards, etc. Its a long list.

It sounds like all these costs are much higher then in NZ, where
many don't apply.
Posted by Yabby, Tuesday, 23 June 2009 10:56:17 AM
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Nope, C'&W' are a duopoly, and ripping us off, forget the clever accounting. Look at any meat or vegetable product, at the farm-gate the returns are minimal, and the time twixt gate and shelf accounts for less than 10% of the retail price, if that. The mark-up happens once the chains get their hands on it, and we all pay.
Break up the chains, introduce REAL competition, the prices will fall.
The Yanks did it, with their Anti-trust Laws years ago, why is impossible here?
Posted by Maximillion, Tuesday, 23 June 2009 11:20:07 AM
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