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#1
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Power of supermarkets
Not so long ago I told Ray that I'd read of a wholesale nursery going
belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. -- Sacha www.hillhousenursery.com South Devon www.helpforheroes.org.uk |
#2
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Power of supermarkets
Assuming that I'm not in Sacha's killfile along with half of Usenet.
Sacha wrote: Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. If "Ray" had have dug a little deeper, he would probably learned that this is a standard a clause in the contract between the two parties that allowed them to do that - and the nursery owners would have been well aware if it and agreed to it. It has happened before with farmers having fields of crops that had been ordered two years previously refused. It simply protects the supermarkets profits if the produce is not selling to well in their stores. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. There are many reasons for doing so and greed is one of those - or they simply take a gamble. But neither do I understand the morals of a customer who will do that to a supplier. Then you are very naive as a business woman, as it happens every day - particularly if those customers/businesses carry a great deal of 'clout' within their areas of expertise. After all, like you, they are only there to make a profit any way the legally (or otherwise in some cases) they can. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. As for going "back to the old days of shopping" do you really think you will be better off? You will in fact find that many of those "small individual shops" will be unable to supply your "every need" as it takes a great deal capital tied up in stock sitting on their shelves on the off-chance that enough customers will walk through the door to buy it - and many are unable to do that. Customers are really rather fickle with what they actually want or need. How much capital do you have tied up in stock - and how much of that stock goes to waste? |
#3
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Power of supermarkets
"Sacha" wrote
Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. This has been standard in most Supermarket contracts for years. Indeed if they decide to do a BOGOFF for example then they halve the price they pay to the supplier in most cases. -- Regards. Bob Hobden. Posted to this Newsgroup from the W of London, UK |
#4
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Power of supermarkets
On 31/08/13 23:35, Sacha wrote:
Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. That is an example of the reasons my local venison farm won't supply supermarkets - and the farmer told me that ~15 years ago. I seem to remember a TV programme where a small supplier was encouraged by a supermarket buyer to spend vast amounts ramping up production, without any guarantees from the supermarket. The supermarket was then in a position to say "knock x% off or we'll stop stocking it", and the supermarket didn't care that it would become permanently loss-making. It was also necessary for the small supplier to offer the supermarket a subsidy to get shelf space, usually in the form of an "introductory special price" Food is now relatively much cheaper than when I was a kid, and these examples are part of the reason. Cut out the middleman and food becomes more expensive (que?), as (arguably) illustrated in your local farmer's market. |
#5
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Power of supermarkets
On 2013-09-01 08:47:18 +0100, Bob Hobden said:
"Sacha" wrote Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. This has been standard in most Supermarket contracts for years. Indeed if they decide to do a BOGOFF for example then they halve the price they pay to the supplier in most cases. I know it's standard practice, it's the morality of it that gets me. I entirely appreciate that the grower was very unwise but in the current financial climate, I'm not sure he or she can be blamed for grasping a potentially huge and maybe business-saving, order. Anyway, that's another one gone for good, jobs, home perhaps, career over. According to some of the reps who come in here, small nurseries, especially wholesalers, are failing weekly. -- Sacha South Devon |
#6
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Power of supermarkets
On 01/09/2013 09:06, Tom Gardner wrote:
On 31/08/13 23:35, Sacha wrote: Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. That is an example of the reasons my local venison farm won't supply supermarkets - and the farmer told me that ~15 years ago. I seem to remember a TV programme where a small supplier was encouraged by a supermarket buyer to spend vast amounts ramping up production, without any guarantees from the supermarket. The supermarket was then in a position to say "knock x% off or we'll stop stocking it", and the supermarket didn't care that it would become permanently loss-making. It was also necessary for the small supplier to offer the supermarket a subsidy to get shelf space, usually in the form of an "introductory special price" Food is now relatively much cheaper than when I was a kid, and these examples are part of the reason. Cut out the middleman and food becomes more expensive (que?), as (arguably) illustrated in your local farmer's market. I remember a guy telling me that he invested heavily in machinery to fulfill an order from M&S. He would have been in clover had they repeated the order, but they didn't, and nor did anyone else |
#7
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Power of supermarkets
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#8
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Power of supermarkets
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#9
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#10
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Power of supermarkets
"Jake" wrote in message ... On Sat, 31 Aug 2013 23:35:12 +0100, Sacha wrote: Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. Anyone running a business, indeed anyone, who is unaware of the power of the big supermarkets has had their head in the sand for years. For example, the arguments about farm-gate prices haven't exactly been low profile. That nursery took a risk and lost out. Such is life. I would seriously question the business acumen of anyone who allowed a situation where their existence depended on a single order. Perhaps they were too greedy to see the risk. I don't begrudge the higher prices at the local farmers' market or at my local butcher, the extra 1 or 2p a litre at the local garage (which is actually 1p cheaper than the nearest Tesco at the moment!). And cheese made by a small producer tastes way better than the mass-produced crap in the supermarket. But, and it's a big but, I can afford all this and have the time. So many people cannot and are at the mercy of whoever is the cheapest or the place where they can do all their shopping in one go. Hence the so-called power. And IME, the demise of the "corner shop" is as much the result of the attitude of the owner as anything else. I've seen it here and back in Cardiff where I used to live. With the right attitude, these little shops can thrive, even if they back on to a large supermarket's car park! The common denominator seems to be ethnic! -- Cheers, Jake ======================================= URGling from the east end of Swansea Bay in between yanking up ever-appearing clumps of Himalayan balsam. |
#11
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Power of supermarkets
On Sun, 01 Sep 2013 11:24:46 +0100, David Hill
wrote: How the hell did our parents and grand parents survive? It's why many mothers of younger children were not in employment outside the home then. Now, it takes two salaries to keep a roof over the family's head, also, many have had to move away from the extended family (who might have helped with child care) in order to get those salaries. That said, it seems many parents of younger children now seem to expect to spend more time and money on a social life than I remember my parents' generation doing. To bring this back on-topic, have you noticed that gardens are now generally considered part of the living space, not an opportunity to grow food? Gardening on Wilts/Somerset border on slightly alkaline clay underlying soil worked for many decades. |
#13
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Power of supermarkets
On 2013-09-01 11:26:16 +0100, Jake said:
On Sat, 31 Aug 2013 23:35:12 +0100, Sacha wrote: Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. The more I hear of this sort of thing, the less inclined I am to use supermarkets and am minded to go back to the old days of shopping at small individual shops for every need, wherever possible. It's less convenient, it takes longer and it may well be a bit more expensive but if supermarkets can do this to their suppliers, it's a short step from that to "you can only buy what we offer you, there is nothing else" and all our high street shops are gone and so are our choices. Anyone running a business, indeed anyone, who is unaware of the power of the big supermarkets has had their head in the sand for years. For example, the arguments about farm-gate prices haven't exactly been low profile. That nursery took a risk and lost out. Such is life. I would seriously question the business acumen of anyone who allowed a situation where their existence depended on a single order. Perhaps they were too greedy to see the risk. I don't begrudge the higher prices at the local farmers' market or at my local butcher, the extra 1 or 2p a litre at the local garage (which is actually 1p cheaper than the nearest Tesco at the moment!). And cheese made by a small producer tastes way better than the mass-produced crap in the supermarket. But, and it's a big but, I can afford all this and have the time. So many people cannot and are at the mercy of whoever is the cheapest or the place where they can do all their shopping in one go. Hence the so-called power. I well understand the power. I think it wrong to offer someone the carrot and then beat them with the stick - big business tactics or not. And IME, the demise of the "corner shop" is as much the result of the attitude of the owner as anything else. I've seen it here and back in Cardiff where I used to live. With the right attitude, these little shops can thrive, even if they back on to a large supermarket's car park! The common denominator seems to be ethnic! Our local ironmonger has been running against the 'big business' tide for years. It changed hands two or three years ago but the previous owners were 'warned' by reps from various companies that they wouldn't survive unless they started selling everythinig in small packets hanging from stands, or smartly displayed in sets of 6 spanners when someone wanted only one, etc. They haven't changed their ways, the business is under new ownership and you can go in to buy two nails and a tea pot and if they haven't got the saucepan you want in stock, they'll go through their catalogues and find it and order it. From all apparent evidence, it thrives, always has loads of people in there and not so long ago, opened up the 'back room' as another display area. It's not dissimilar to the 'four candles' type of place, though some of the merchandise is a bit more exciting! -- Sacha www.hillhousenursery.com South Devon www.helpforheroes.org.uk |
#14
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Power of supermarkets
On 01/09/13 11:24, David Hill wrote:
How the hell did our parents and grand parents survive? Part of their survival involved spending ~30% of income on food. That's now down to ~15% There are multiple reasons for that change, but big supermarkets are part of it. |
#15
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Power of supermarkets
In article ,
Janet wrote: In article , says... Not so long ago I told Ray that I'd read of a wholesale nursery going belly up. Today, he learned a bit more about it and said it was because it had a £3 million order from a supermarket chain which suddenly decided to halve that order. Then it said that if they potted the remaining order on, they might buy them. They didn't. Personally, I don't understand why anyone puts their entire future and livelihood into the hands of one customer. But neither do I understand the morals of a customer who will do that to a supplier. Why make it about morality? It's about business, what the supermarket can sell, to customers whose choices are led by the weather and the economy. If there's a late cold spring, down goes the demand for tender plug plants and GYO salad trays. When budgets are feeling the pinch paying bills and buying food, customers may spend less on hanging baskets or pots of bulbs in flower. It may be very lovely for you, a comfortably off non-working housewife with a car to spend more time during the day, and more money, shopping in small businesses. Don't you realise it's a luxury to have such means and opportunity, one denied to many working parents on a very tight budget. They need to shop outside working hours. How many small bakers, butchers and grocers stay open in the evening? Even if they did, what does a single working parent do with the tired children as s/he trails them a mile or two from shop to shop ? Carrying the shopping, because small shops don't have a great big car park, and trolleys with child seats. And what you don't realise is that it is people like you who have driven the alternatives to bankruptcy. It's not only the way that you shop - it's the political establishment that you support. I will describe the working hour aspect below. But what is worse is the harmful effects that you have caused to the rest of society. Starting with supermarkets, but now in almost all areas of retail and 'service' (such as banks), we are no longer the customers but their commodities. Similarly, the government is now the agent of such organisations, and has often changed the law when they found it allowed individuals or small organisations to resist - and the working hours issue is PRECISELY one such. The country is now dependent on massive imports of oil, and have essentially damn-all sources of foreign exchange except money laundering to pay for it. WHEN, not if, we run out of that, we are going to hit real trouble without the time to deal with it. It is legally and politically acceptable to pay people less that it is possible for them to raise a family on, and sometimes even less than it is possible to live on. It is YOU who are among the lucky ones, to be able to raise a family and work, and afford a car. Child care is beyond the unfortunate ones. And so on. In article , 'Mike' wrote: And IME, the demise of the "corner shop" is as much the result of the attitude of the owner as anything else. I've seen it here and back in Cardiff where I used to live. With the right attitude, these little shops can thrive, even if they back on to a large supermarket's car park! The common denominator seems to be ethnic! That is partially true, but also very false. Back in the 1950s to 1970s, the laws on working hours and Sunday trading were changed to allow small traders to open for longer hours than large shops, and many did so. The nascent supermarkets got the law changed so that they had the same privilege, thus removing the only advantage that a small trader had over them, and the supermarkets abused their position to force their suppliers and small, competitive shops to the wall. But it wasn't just that - they got the law changed so that they are largely except from parking planning regulations (whereas small traders are not). Regrettably, since the tories took over the Labour party, we were left with only the woolly-minded Liberal Democrats as opposition, and we have seen what a balls up they have made of coalition. It's a bit unfair to blame them, as they had no direct experience of the dirtiness of the politics played by the main parties. Unfortunately, our only hope for improvement is a revolution, and those are never nice to live through (even when they are bloodless). God help us all, because doing so is beyond mere sub-deities :-( Regards, Nick Maclaren. |
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