Dunnes price rise almost 50%

seanoge

Been getting cans of German lager from our local Dunnes @ 99cent a can for the past couple of years. Last week saw they were €1.45.-. And there's a recession on!

triple-M

Go Dutch

grenache

This may help explain why.....

http://dermotswineblog.blogspot.ie/2012/12/being-for-benefit-of-mr-flanagan-or.html

It's about wine but it's relative to beer or spirits also.

rubadub

Quite a condescending prick in that article, especially when he misses obvious points himself.

Now, here's the bit that Mr Flanagan and a lot of other politicians don't seem to understand (it may yet be a Project Maths question for Junior Cert Ordinary Level) - margin is a percentage so this percentage is applied to all of these costs, including the extra duty.

How does he know they all operate like this? And does he not think the desired margin could change? I would expect many businesses are after a certain profit, and the margin can change accordingly to achieve this.

On top of that again (seriously complicated maths, this, even UCD maths students struggle with this one LOL!) the retailer also applies a margin (imagine that - people trying to trade profitably in order to employ others - the cheek of them!!!), so that duty per bottle increase has two margins applied before the retail price is calculated.
Since the increase is €1 per bottle (including VAT) and the average wholesale and retail margins are 20% and 30% on return, that €1 at the warehouse door translates to €1.78 (including VAT) on the shelf

To show this in the extreme say they put it up to be €100 a bottle, then according to this guys unchangeable rules the distributor would put up to €30 on each bottle (and the retailer would of course accept this as its just the way things are). Then the retailer would put on his margin too and so both the distributor & retailer are now making extraordinary profits per bottle.

While in reality other distributors and retailers will adjust their margins to maintain their original profitability and these now ridiculously priced guys would sell nothing. Or they could calculate their prices in another way, I would have thought many would NOT include duty in the value before margin is applied -because of this very issue. Or would have quite complicated calculations.

Any retailer who sells cigarettes will tell you they barely make a profit on them, but the duty has steadily increased over the years so going by this guys set-in-stone business model they should be one of the most profitable things in the shop.

I am not sure where he gets the €1.78 from either? Does he really think if they had put it up €100 in the budget then consumers would be paying €178 more?

EDIT: I think he had a typo and meant to say "Since the increase is €1 per bottle (EXcluding VAT)" so he applies 1.2X1.2X1.23=€1.77
If this is the case he is further showing his ignorance as the €1 increase did factor in VAT.

coylemj

seanoge wrote: »

Been getting cans of German lager from our local Dunnes @ 99cent a can for the past couple of years. Last week saw they were €1.45.-. And there's a recession on!

They're trying it on, just shop around for a better price or switch brands. Dunnes and all the other retailers are sensitive to changes in demand for individual items - barcode readers means someone in head office can instantly see what stock is moving and what is not. They can change the price at the drop of a hat if people aren't buying.

Don't forget to check out Aldi and Lidl, they sell a lot of the mainstream brands of beer as well as the oddball stuff that you never heard of.

The rules of commerce are the same rules that apply when you go to sell your car - you try to get the highest price you can. You don't have to pay the higher price.

Beaver1

my niece shops in Dunnes, her last bill was €190
she done the same shop in Aldi a week later, €120,

Dunnes are getting too expensive

rubadub

Beaver1 wrote: »

my niece shops in Dunnes, her last bill was €190
she done the same shop in Aldi a week later, €120,

Does she buy many branded items?

I am guessing many people do not see their usual brands in aldi/lidl and so are forced into buying own brand products.

If we got to see the actual receipts it might become more clear -like when these independent surveys reveal their numbers I invariably do not do my shopping anything like these survey people.

I have not bought beer in dunnes for many years but I do remember their german lager was a step up from their bogstandard beer. It used to be about 1.15-1.20 or so. I remember at the time thinking the price was high as there were so many other €1 beers about.

aknitter

I stopped going to Dunnes ages ago - far too expensive, Lidl or Aldi and then Tesco for the things not available in the other 2

Beaver1

rubadub wrote: »

Does she buy many branded items?

I am guessing many people do not see their usual brands in aldi/lidl and so are forced into buying own brand products.

If we got to see the actual receipts it might become more clear -like when these independent surveys reveal their numbers I invariably do not do my shopping anything like these survey people.

I have not bought beer in dunnes for many years but I do remember their german lager was a step up from their bogstandard beer. It used to be about 1.15-1.20 or so. I remember at the time thinking the price was high as there were so many other €1 beers about.

she buys all Aldi branded items and anything she cant get over to tesco. they have lovely bread, salads and their meat is Irish and way more cheaper.

seanoge

Yes, Aldi & Lidl sell very nice German beer. 6 bottles = €7.49. In Germany, same beer from Lidl, 6 bottles = €2.50. And don't say Germans pay less tax. I lived there for 20 years and we paid a LOT of tax.

suicide_circus

seanoge wrote: »

Yes, Aldi & Lidl sell very nice German beer. 6 bottles = €7.49. In Germany, same beer from Lidl, 6 bottles = €2.50. And don't say Germans pay less tax. I lived there for 20 years and we paid a LOT of tax.

They pay less duty on alcohol though. A LOT less, particularly on beer which is classed as Lebensmittel - ie: a bare necessity for living, not a luxury good. This is also the case in Austria.

rubadub

suicide_circus wrote: »

They pay less duty on alcohol though

Now, now, no room for sense in this forum -the fella specifically said not to mention tax.

Lawrence1895

seanoge wrote: »

Yes, Aldi & Lidl sell very nice German beer. 6 bottles = €7.49. In Germany, same beer from Lidl, 6 bottles = €2.50. And don't say Germans pay less tax. I lived there for 20 years and we paid a LOT of tax.

Including 25 cent/bottle, which you get back, when you bring the empty bottles back to the shop. The recycling scheme for cans and bottles

rubadub

Lars1916 wrote: »

Including 25 cent/bottle, which you get back

I was in lidl in germany a few years back, though it was cheap I do not think it was that cheap. You seem to be claiming this 2.50 includes 6x25c (1.50) so the 6 beers are €1.

No way its that cheap, but I don't remember it being as low as €2.50 for perlenbacher (which I drink here). Unless 2.50 was a temporary offer.

shanered

It would drive you to drink, that is if it wasn't so bloody expensive!