Making Sense of Pricing – Part 2

Following on my previous post regarding the apparent lack of any logic in the pricing of a leading brand of automatic dish-washing soap products, I can now confirm that there appears to be a complete lack of interest in what the consumer thinks! I received no response to my e-mails to the retailer and the manufacturer so I thought that I would follow a different route.

First I phoned the Customer Care line of the manufacturer (probably better described as the “Customer Don’t Care line”) and asked if they could explain the logic to me. “Sorry we don’t discuss pricing”, I was advised.” you need to speak to the retailer”.

So I went back to the chain store and asked the manager to explain the logic behind the fact that smaller packs of the dish-washing tablets were cheaper per unit than the larger packs. Once he had wiped the amazed look off his face, his first response was “the smaller packs must be on a special offer”.

“Not so”, I said as we traipsed off to the aisle to check – sure enough, not on special!

“I will have to check with Head Office” said the Manager.

“Fine – I’ll be back tomorrow to hear the answer” I said.

On my third return visit (he had forgotten the first time and claimed that he had not heard from Head Office the second time) he informed me that he could not get any explanation from Head Office nor from the rep from the manufacturer.

“So, I said, you are happy to keep ripping off consumers in your store?” I asked.

This at least provoked some reaction – albeit a very defensive “How can you say that?”

So I asked him if it made sense to him that I should pay 10% per unit more for the dubious “privilege” of buying a 25% larger quantity of one of his products. After he had grudgingly admitted that it probably didn’t really make sense, I asked him if the same applied to say, mealie meal or rice or sugar or any other product that perhaps less discerning or less educated consumers may purchase regularly. Or would it make sense that you charged me R50.00 a kilo for sliced ham if I buy 250 grams and R55-00 a kilo of I buy 500 grams?

The comparison of course is ridiculous but I was trying to get him to understand the principle!

So the bottom line is that I cannot explain the logic in the pricing of this product and I am now actively seeking other similar examples.

I am aware of the principle of “Caveat Emptor” or buyer beware. But I have also a concern that we, as consumers, are unsuspectingly being exploited. By whom, I am not certain at this point in time.

How many busy working people have the time to “do the math” on every supermarket item when we rush in to do a quick shop on the way home from work. How many consumers do not have the wherewithal to do this?

I do know that some supermarkets are moving in the direction of displaying unit prices on their shelves but these are in the minority. I am now hell-bent on finding similar examples of how we are being “ripped off” and if that term is too harsh for you, how about systematically milked!! Of real interest to me, however, is that no one has yet leapt to the defence of the retailers and FMCG manufacturers. Nor apparently felt as strongly about this as I do and added their tuppence worth. Apathy reigns!!!

Watch this space!!!

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Tags: consumer, Customer Care, Manager, manufacturer, pricing, retailer