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check this out for rip off ireland

  • 15-11-2010 12:19am
    #1
    Closed Accounts Posts: 4


    Take a look at this price list my friend gets every week after enquiring about opening up a shop, but has since retired, the food show here is just a small selection available through Dublin, UK & Holland, with free delivery if at least 2 pallets are ordered, if it doesn't make much since look at the seedless grapes @ €9 for a 5kg box, now my local shop sells grapes for €5.50 per kilo that's €27.50 per box a profit of nearly €20, now I'm not saying the shop is making all the profit but somewhere along the line something is going wrong!!

    Seedless Grapes
    5kg Red/GreenSA9
    Cooking Apples
    IR 18kg5
    Apples
    all sorts x100 FR15
    fyffes pineapples
    x6/x8/x99
    fyffes bananas 40lb 22
    fyffes bananas 18lb12
    Leeks
    5kg VIDEAU NL3
    Parsnips
    20kg unwashed8
    Parsnips 10kg washed5
    Carrots 20kg IR unwashed C25
    Carrots
    10kg washed IR3
    Cabbage York x10 IR
    4
    Cauliflower
    x6 IE5
    Celery sticks
    x14 IE6
    Onions monie gold 19,1kg 75/105 NL 7.80
    Red onions
    10kg 60/80 "monie" NL 4.80
    Peeled garlic
    1kg CN3.50
    Chicory 5kg NL8
    Courgettes
    M ES5
    Potato Rooster/Record/Kirr Pink IE 20kg3.50
    Potato Rooster/Record/Kirr Pink IE 10kg2
    Jolly Roger Chipper Potato 25kg UK 5
    Brussel sprouts 10kg IE5
    Broccoli
    8kg IE 9
    Mushroom
    6lb IR€4
    Cucumbers sealed x14 50+ ES 5
    Tomatoes 6kg IR €6
    Tomatoes A 47/57 medium VIDEAU NL5
    Tomatoes
    plum A 47/57 NL 9.50
    Tomatoes
    cherry vine 3kg VIDEAU NL10
    Lollo rossa-Frisee-Oakleaf lettuce x12 VIDEAU NL9
    Iceberglettuce
    x12 ES5.50
    Butterhead lettuce
    x12 IE4
    Melons
    Cantaloup/Galiax6 BR9
    Mangetout-Finebeans-Sugarsnaps
    2kg ZW 9.50
    Chillies
    Green/Yellow3kg NL €7
    White cabbage
    25kg 9/10 NL €8.50
    Peppers
    Red/Yellow/Green/Orange 5kg 80/100 VIDEAU NL €7
    Chinese leaves x8 VIDEAU NL €6.50


Comments

  • Registered Users, Registered Users 2 Posts: 4,020 ✭✭✭3DataModem


    Quick ... open a shop and become a millionaire!


  • Closed Accounts Posts: 7,221 ✭✭✭BrianD


    The shop keeper also has to factor in his overheads and storage of the product. The price list also doesn't indicate if this is just bulk pricing or whether there is packaging charges as well i.e. to put the produce into standard packages for the consumer.

    You also have to remember that fruit and veg have a short shelf life. If you don't sell it in a few days it has to be binned. Most retailers factor in this wastage in their pricing.


  • Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    Jm2000 wrote: »
    look at the seedless grapes @ €9 for a 5kg box, now my local shop sells grapes for €5.50 per kilo that's €27.50 per box a profit of nearly €20, now I'm not saying the shop is making all the profit but somewhere along the line something is going wrong!!

    You clearly have no idea what you're talking about. Sales price - cost price does not equal profit. You need to pay wages, tax, rates, rent, mortgage, electricity, heating, storage, cleaning, and any other bill you can think of. Get off your high horse, and take a dose of reality.


  • Closed Accounts Posts: 32 Batiste


    They should not get away with that :mad:


  • Closed Accounts Posts: 1,530 ✭✭✭TheInquisitor


    Take away VAT and he's probably making E20 margin which is 50% on sales. Pretty standard to be honest. Clothes retailers make 60-70% margin on sales


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  • Banned (with Prison Access) Posts: 4,991 ✭✭✭mathepac


    Take away VAT and he's probably making E20 margin which is 50% on sales. ...
    There is no VAT.


  • Closed Accounts Posts: 1,530 ✭✭✭TheInquisitor


    You are indeed correct Sir! My Mistake!!

    My only other point is that local shop isn't buying them in by the pallet so obviously a middle man supplier is making some of the profit


  • Closed Accounts Posts: 4 Jm2000


    jor el wrote: »
    You clearly have no idea what you're talking about. Sales price - cost price does not equal profit. You need to pay wages, tax, rates, rent, mortgage, electricity, heating, storage, cleaning, and any other bill you can think of. Get off your high horse, and take a dose of reality.
    That's the kind of transparency people don't see, when they go into a shop, all those over heads? ,that's what we are paying for! now here's is a solution, setup a direct charge coop. say 50 like minded people group together & order in bulk direct for the supplier & i there isn't vat on fruit & veg.


  • Registered Users, Registered Users 2 Posts: 3,075 ✭✭✭Shelflife


    correct no vat , but the wastage on fruit and veg is high, not many centras or similar shops would be in a position to buy two pallets of fruit and veg, the waste on that amount would be huge.

    op id suggest you do a small bit of homework before you start shouting rip off.


  • Closed Accounts Posts: 4 Jm2000


    Shelflife wrote: »
    correct no vat , but the wastage on fruit and veg is high, not many centras or similar shops would be in a position to buy two pallets of fruit and veg, the waste on that amount would be huge.

    op id suggest you do a small bit of homework before you start shouting rip off.
    I did do my homework & your right about the waste the shop i used to buy from had a guy call twice a week for 2 big bins of gone off food, now there people starving in Africa & shops are buying so much food that it has to overcharge the rest of us to cover there profit margin, its crazy!!


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  • Registered Users, Registered Users 2 Posts: 6,465 ✭✭✭MOH


    I can buy two price-flashed 2 litre bottles of Coke for 3 quid in the supermarket, but my local shop is charging 1.50 for 500ml bottle. They're charging me 12 quid for 4 litres, oh my god, it's a ripoff.

    Basically, buying stuff in bulk quantities is cheap.


  • Closed Accounts Posts: 1,383 ✭✭✭91011


    If anyone whatsoever thinks there is huge profit to be made in retailing in the current climate, please feel free to open a shop.

    There are absolutely ZERO barriers to do this.

    Nothing, nada zilch stands in your way.

    There are THOUSANDS of empty shops around Ireland - if you present a good plan you'll even get your first 6 months rent free. You can even get short lets for a few months to try it out.


    Go on try it - pleeeeeaseeeeee.

    Then come back here and admit that its bloody difficult to make a living from it.

    Thankfully I'll be out of retail after Christmas and concentrating on my other business - which sell into the UK & NI and make me a nice profit:D.


  • Registered Users, Registered Users 2 Posts: 33,518 ✭✭✭✭dudara


    We don't discuss Rip Off topics in Consumer Issues. Moved instead to Rip Off Ireland

    dudara


  • Closed Accounts Posts: 1,210 ✭✭✭dolphin city


    thats why I get my veg and fruit at lidl. Its a quarter of the price of dunnes or other Irish places even taking in factors like heading, light, storage, blah blah, . go to lidl and avoid getting ripped off.


  • Registered Users, Registered Users 2 Posts: 25,483 ✭✭✭✭coylemj


    'Two pallets' minimum delivery for those prices probably implies whole pallets of one vegetable e.g. one pallet of cucumbers and one pallet of tomatoes, this would rule out these prices as applicable to all but the large supermarkets.

    Virtually all small retailers buy from fuit and veg importers/distributors so there is an extra layer of profit and costs involved, thus those prices you're quoting are not applicable to the local corner shop at all.


  • Closed Accounts Posts: 6,926 ✭✭✭davo10


    Jm2000 wrote: »
    That's the kind of transparency people don't see, when they go into a shop, all those over heads? ,that's what we are paying for! now here's is a solution, setup a direct charge coop. say 50 like minded people group together & order in bulk direct for the supplier & i there isn't vat on fruit & veg.

    If you get 50 like minded people together to buy from a supplier, a certain degree of friendship/understanding is required, if one starts to undercut the others, they would be excluded from the group, in other words it would be what is termed a "cartel". Nice idea though.


  • Closed Accounts Posts: 13,422 ✭✭✭✭Bruthal


    davo10 wrote: »
    If you get 50 like minded people together to buy from a supplier, a certain degree of friendship/understanding is required, if one starts to undercut the others, they would be excluded from the group, in other words it would be what is termed a "cartel". Nice idea though.

    Some cartels eliminate rather than exclude:D


  • Closed Accounts Posts: 1,383 ✭✭✭91011


    The whoesale fruit & veg market in Dublin is open to the public - if you can use a box of tomatoes / box of grapes, just drop down and any of the stalls / units will be very happy to sell to you close enough to the prices stated in the OP

    In fact up to a few years ago (ok a fair few years ago:D) the market prices for the top 20 fruit & veg were printed in the Irish Times business section.


  • Subscribers Posts: 19,425 ✭✭✭✭Oryx


    Only someone who has never tried to run a retail business would call the above a rip off. Its normal economics. As has been suggested, why dont you try it, if you think its easy? But before you plan the cruise youll take with your profit, please factor in:
    Wastage/shrinkage which in fruit and veg could take a substantial % of your profit.
    Rent, unless youre planning to sell from the boot of your car.
    Wages. Cabbages dont stack themselves.
    PRSI and PAYE to go with those wages.
    Rates, calculated by the sq footage of your premises. A good few grand a year.
    Water rates. Even if all you have is a tap.
    Incidental costs, packaging, till stationery, cleaning products.
    Advertising. You cant sell a dollar for 99c without telling someone.
    Refuse charges. Which with pallets and boxes and waste veg, will be expensive.
    Public liability insurance. In case someone slips on a banana.
    Electricity. Shoppers wont buy in the dark.
    Bank charges. They charge businesses to lodge money. Did you know that?
    Accountants fees. Unless you are particularly tax savvy.
    Repairs and maintenance. Things break, all the time.
    Transport costs. Not everything has free delivery.
    Security. Youd think noone would burgle a fruit and veg shop, but youd be surprised.

    And lastly, youve got the worry of not having a regular paypacket, and hoping your sales figures for the next month will be enough to meet your outgoings.

    If it was that easy we would all be retailers. Those are the reasons most are not.


  • Closed Accounts Posts: 13,422 ✭✭✭✭Bruthal


    Oryx wrote: »
    Wages. Cabbages dont stack themselves.
    .

    Some cabbages actually take wages:)


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  • Closed Accounts Posts: 1,383 ✭✭✭91011


    I'll try and put estimated costs based on a 600sq ft store (small) in a town such as Carlow

    Wastage/shrinkage which in fruit and veg could take a substantial % of your profit. - 20% on average
    Rent, unless youre planning to sell from the boot of your car. €20,000 per year
    Wages. Cabbages dont stack themselves. 2 x part time 1 x full time €40,000 / year
    PRSI and PAYE to go with those wages. €4000
    Rates, calculated by the sq footage of your premises. A good few grand a year. €5000
    Water rates. Even if all you have is a tap. Minimum €600 for basic useage.
    Incidental costs, packaging, till stationery, cleaning products. about €3000 per year
    Advertising. You cant sell a dollar for 99c without telling someone. about €5000 / year
    Refuse charges. Which with pallets and boxes and waste veg, will be expensive. €1500 per year
    Public liability insurance. In case someone slips on a banana. €3000 / year
    Electricity. Shoppers wont buy in the dark. €1500 / year
    Bank charges. They charge businesses to lodge money. Did you know that? about €1000 + interest on business loan €2000
    Accountants fees. Unless you are particularly tax savvy. - If hes nice €4000
    Repairs and maintenance. Things break, all the time. circa €1500
    Transport costs. Not everything has free delivery. €1000
    Security. Youd think no-one would burgle a fruit and veg shop, but youd be surprised. €1000


    That's probably about the absolute minimum you will spend on a years trading in a small shop in a small town.

    That a lot of apples you need to sell.


  • Closed Accounts Posts: 13,422 ✭✭✭✭Bruthal


    Definitely a difficult business to be in, i never was, but i dont think it takes much cop on to realise its very hard. Especially when you see the costs involved there.


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