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The Forum > General Discussion > The Woolworths/Coles dulopoly continues unchecked

The Woolworths/Coles dulopoly continues unchecked

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Phillip, most commercial retail leases are five years, with no option, so that's why they look to getting their money back in a couple of years, lack of security.

Aiden, it matters a lot. Many local charities and events suffer simply because the small business owner also used to have kids attending the local schools/sporting events. Your local hardware owner is one example of a small family run business that has been obliterated by the big two.

The other critical fact is that most small retail businesses have a much higher staff cost to turnover ratio, so that means less jobs to go around and, given the big two are continually finding ways to reduce staff, that something that should bother you if you have children, or grandchildren, simply because they won't have the same opportunities we did as kids growing up and entering the workforce. Think about it!
Posted by rehctub, Friday, 26 December 2014 4:36:52 PM
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Butch, the following list might help explain some of the favorable treatment big business gets from the LNP and Labor.
These people are not in the business of giving away money, they want something with a profit margin in return.

http://www.abc.net.au/news/interactives/tables/aec-political-donations-table/

Big Business will maintain its control of the big two in government whilst ever they are able to make so called "political donations". They will tell you its money well spent.

Coles found advertising frozen bread as "fresh"
Coles fined for advertising imported product as "Australian"
Coles fined $10m for squeezing suppliers.
Coles gives Paul1405 product for free, for trying to rip him off!

Woolworths the 'fresh food people' fined for selling out of date product.
Woolworths using bully tactics against suppliers.
Woolworths gives Paul1405 product for free, for trying to rip him off!
Just a few big news examples in a very big list, of criminal activity by the big two shonks!
Posted by Paul1405, Friday, 26 December 2014 8:31:41 PM
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Butch, why don't you apply the principle of 'Margin Maintenance' the big two do and it works well for them. This is how it works, on product 'A' our traditional margin is say $4, so when it retailed for $10 the wholesale price was $6, $10-$4=$6, BUT if through competition from the other big retailer I am forced to set the shelf price to say $7, the new wholesale price is now $3 being $7 less my traditional margin of $4. It the shelf price should go even lower to say $5 then the new wholesale price is $1. As a big retailer I am very happy with this new arrangement, matter of fact, as the shelf price falls sales increase! Even more profit! Do you see a problem with this arrangement, I can't. Because if you do I will cut you from the supply list, and that's curtains for you. LOL
Posted by Paul1405, Friday, 26 December 2014 9:30:13 PM
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Paul, the only way you can reduce the wholesale price is to pay the supplier/producer less. Besides, if you do drop your price, and sales do increase, where do you think the increased sales come from?

There is a case being herd for extended trading hours leading up to Christmas. The thing is, there is only so much money to go around so, if one sector increases it's sales, it's at the peril of another, be it repairs and maintenance, insurance/investment, white goods/electronics, cars, boats, holidays/travel or even savings. In order to spend more on one thing, one needs to remove spending from another. In fact, our present government is experiencing this right now, as there are insufficient funds to service all our needs, let alone our wants.

As for accepting/demanding free goods due to company policy, I refuse to do that simply on moral grounds. You must remember, Woolworths and Coles don't wear that cost, it's usually the staff first in the form or cuts to numbers or hours, then it's the share holders. So remember that when you take your next free gift.

I notice now you can go to a fast food chain and place your order and pay without speaking to anyone, while this may seem like a great idea on the surface, it's going to cost even more jobs and, considering the big two either own most of these outlets, or have them in their sites, the result is going to end in tears. You can even draw fuel without dealing with anyone.

More evidence the costs in doing business in Oz is out of control.
Posted by rehctub, Saturday, 27 December 2014 8:37:33 AM
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Hasbeen>> it is interesting that the US is criticised for being corporation friendly, but they have anti trust laws, that stop monopoly type operations<<

Hasbeen, in Canada they had the mass merchants going into malls and then discounting prices in a food segment until the local opposition went broke. The laws changed which meant that any discounts lasting for longer than a week had to be done nationally in every outlet they have.

So the strategy of discounting vegies or bread or meat in one shopping precinct until the opposition closed their doors is dead. Small business has thrived in Canada since the laws were invoked.
Posted by sonofgloin, Saturday, 27 December 2014 10:44:45 AM
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sonofgloin, I was in a butcher shop when similar laws were introduced here in QLD. So what the supermarket did was run pomotions like, spend $30 or more on meat and get a further 8c/l off your fuel. They did the same for bakery and fruit/veg. They are ruthless.

Another silent move they are no doubt working on is outsourcing their packaging over seas. My tip is it won't be long before most items are packed off shore. At present they are placing most of that burden onto the suppliers but even they will have to give in at some point as costs continue to increase and margins continue to be squeezed.

I read somewhere recently that Woolworths is the largest holder of pokie licenses in our region, so that revenue is further protecting their business from failure. Meanwhile, our governments just sit back and observe.

I saw an interesting topic discussed on 'big ideas' with one suggestion being that individuals who head corporations also be accountable. Because the recent $10 mil fine to Coles was paid by the consumer and share holders, not this who made the call.
Posted by rehctub, Saturday, 27 December 2014 11:01:50 AM
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