Profiteering?

[El Cid]

In normal circumstances, is there such a thing as profiteering?

Seems to me like people/politicains blaming the companies for high inflation/prices.

We have a great mix of small shops and supermarkets, so they compete well, no profiteering there.

 

Lots of different energy and mobile companies, great competition there.

 

Water companies have no competition, buses and trains have little competition.

[crookesey]

1 hour ago, El Cid said:

In normal circumstances, is there such a thing as profiteering?

Seems to me like people/politicains blaming the companies for high inflation/prices.

We have a great mix of small shops and supermarkets, so they compete well, no profiteering there.

 

Lots of different energy and mobile companies, great competition there.

 

Water companies have no competition, buses and trains have little competition.

One man’s profiteer is another man’s entrepreneur, I suppose that it just depends on which side of the profit you’ve on.

[trastrick]

The industry standard average net profit for the major suppliers of everyday goods, like Tesco, is from 1 to 3% on sales.

 

Tesco currently is running at 1.15%

 

Not bad for a chain of supply that brings the World's goods, fresh to your neighborhood store.

 

 

Edited July 18, 2023 by trastrick

[Anna B]

1 hour ago, El Cid said:

In normal circumstances, is there such a thing as profiteering?

Seems to me like people/politicains blaming the companies for high inflation/prices.

We have a great mix of small shops and supermarkets, so they compete well, no profiteering there.

 

Lots of different energy and mobile companies, great competition there.

 

Water companies have no competition, buses and trains have little competition.

Yes, there is certainly profiteering, and I have to disagree that small shops are able to compete, which is why we are seeing the demise of many independent shops on the high street, only to be replaced with the big corporate giants who can afford to buy them out and lower prices, that is until they have a monopoly - then beware.

 

IMO basic Utilities which  are essential to wellbeing should always stay in the hands of governments who can then maintain control, particularly in times of crisis.   

[melthebell]

They've just investigated supermarket prices and found there's been no competion and plenty of profiteering, including price drops not passed on to customers

[fools]

3 minutes ago, melthebell said:

They've just investigated supermarket prices and found there's been no competion and plenty of profiteering, including price drops not passed on to customers

they've? who they?

 

balderdash, supermarkets make about 4%

[trastrick]

31 minutes ago, fools said:

they've? who they?

 

balderdash, supermarkets make about 4%

If these folks who bash the organizations who actually deliver value for money, were to look at the financial waste and corruption in government, the world would be a much better place.

 

Shopping at Tesco is voluntary. Everybody is happy!

 

Being governed is a monopoly, with fines and jails for those who don't bow down to them!

 

They just can't stand how some people, through talent, hard work get to be richer than they are!

 

They invent non existent problems, and then invent whacky solutions, to a non existing problem.

 

It's a destructive blight on society.

 

Meks yu poorly! 

 

 

 

Edited July 18, 2023 by trastrick

[carosio]

People fall over each other to claim a share of a profit, but strangely vamoose when there's mention of a loss!

[El Cid]

2 hours ago, trastrick said:

The industry standard average net profit for the major suppliers of everyday goods, like Tesco, is from 1 to 3% on sales.

 

Tesco currently is running at 1.15%

 

Not bad for a chain of supply that brings the World's goods, fresh to your neighborhood store.

The Tesco share price is just a little less than it was twelve months ago. Surely if you are correct their share price would be higher?

I dont have enough knowledge to comment on the profitability of Tesco, you probably dont either. Is the 1.15% higher than normal?

That sound low to me.

Over the last 30 years supermarket profit margins have been broadly flat at around 5%. They have not been growing as a result of increased consolidation. Thus more money is not being made per product sold. (2009)

 

https://ora.ox.ac.uk/objects/uuid:4d815498-7e83-4735-abbd-abfda4742941/download_file?file_format=application%2Fpdf&safe_filename=Supermarkets_Jan2009.pdf&type_of_work=Report

Sainsbury's retail profit margin was 3.4% pre-pandemic in 2019-20 and 2.99% last year. Tesco has just turned in 3.8%, compared with the 5% it used to aim at. These numbers are miles below what the global food and drink manufacturers achieve.8 May 2023

 

https://www.theguardian.com/business/nils-pratley-on-finance/2023/may/08/uk-supermarkets-profiteering-sainsburys-tesco

[Guest]

2 hours ago, fools said:

they've? who they?

 

balderdash, supermarkets make about 4%

Balderdash   -   How many supermarkets do you own to know this ?

Or maybe you just believe anything they tell you.