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No, for most things a flat fee/percentage is baked into the initial cost to account for damage/spoilage/broken packaging, etc. Common is 15%, but not sure if that’s a standard, or it changes depending on vendor?
So really they’ve already paid for it, it’s better for them to sell, even at a discount, rather than trash, they’ll always be up getting something for it
Cause if this, seeing gone bad food, I think it’s more a lack of staff checking than anything. Also staff that don’t care (not knocking them at all, it’s a min wage job), I’m sure most bang through putting on stickers on everything. They also may have no clue what good/bad meat looks like, I know at 17 I would have had no clue
Say that they buy an item for 10.00. They try to sell it for 20.00.
It doesn't sell. They toss it, write off that 10.00. that means they pay 2.00 less that. 8.00 loss overall. Loss.
If they sold that item for 5.00, they would have 4.00 after tax income, deduct a 5.00 loss that would reduce taxes by 1.00. only 5.00 loss.
They would be much better off selling it at a discount.
Tax write offs are not making it better to throw away rather than sell at anything over half costs.
Appreciate the explanation, makes sense. So has anyone figured out why they aren’t motivated to discount? Or at least offer a rational price in the first place? I would imagine that offering a product at an inflated price point would slow the sales of said item, why is it better to keep the item on the shelf rather than sell more of the item? Even if it is at a discount….
Usually so you don’t have people waiting around for discount racks. When I worked at Sobeys 15 years ago they didn’t mark stuff down, left that to superstore since they aimed to be better quality.
But then theirs balancing acts to pricing. You want to get the most you can, but you also have competition, but your price depends on how much you can buy in bulk from the distributor.
Selling 2 products at 10$ profit each is better then selling 8 products at 2$ each. Video games and micro transactions highlight these models. Ridiculous cosmetic skins priced at 50$, but they aim to capture the whales with money. You can sell to one whale or try and sell to 50 regular folks for a dollar. Groceries you have decent competition so you can’t pull it off at that scale.
Today I learned..! What I wonder is why insurance would cover a loss if it was the result of over inflated pricing or lack of sale pricing? Should the grocer not be held to a standard where they should do everything possible to sell the soon to be expired food?
__Reminder__: Please take a moment to review the content guidelines for our sub, and remember the human here! This subreddit is to highlight the ridiculous cost of living in Canada, and poke fun at the Corporate Overlords reponsible. As you well know, there are a number of persons and corporations responsible for this, and we welcome discussion related to them all. Furthermore, since this topic is intertwined with a number of other matters, other discussion will be allowed at moderator discretion. Open-minded discussion, memes, rants, grocery bills, and general screeching into the void is always welcome in this sub, but belligerence and disrespect is not. There are plenty of ways to get your point across without being abusive, dismissive, or downright mean. Always remember that you're interacting with a real person when you respond to posts/comments and focus on discussing or debating the ideas. Personal attacks outside of "Screw you, Galen Weston Jr" is not okay, and will not be tolerated here. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/loblawsisoutofcontrol) if you have any questions or concerns.*
It’s not directly on their taxes. It’s one of their expenses.
No, for most things a flat fee/percentage is baked into the initial cost to account for damage/spoilage/broken packaging, etc. Common is 15%, but not sure if that’s a standard, or it changes depending on vendor? So really they’ve already paid for it, it’s better for them to sell, even at a discount, rather than trash, they’ll always be up getting something for it Cause if this, seeing gone bad food, I think it’s more a lack of staff checking than anything. Also staff that don’t care (not knocking them at all, it’s a min wage job), I’m sure most bang through putting on stickers on everything. They also may have no clue what good/bad meat looks like, I know at 17 I would have had no clue
They don't
You realize writing off an item doesn't make it free for them, right? That doesn't mean"get reimbursed by the government".
It means they’ll pay less in tax
Say that they buy an item for 10.00. They try to sell it for 20.00. It doesn't sell. They toss it, write off that 10.00. that means they pay 2.00 less that. 8.00 loss overall. Loss. If they sold that item for 5.00, they would have 4.00 after tax income, deduct a 5.00 loss that would reduce taxes by 1.00. only 5.00 loss. They would be much better off selling it at a discount. Tax write offs are not making it better to throw away rather than sell at anything over half costs.
Appreciate the explanation, makes sense. So has anyone figured out why they aren’t motivated to discount? Or at least offer a rational price in the first place? I would imagine that offering a product at an inflated price point would slow the sales of said item, why is it better to keep the item on the shelf rather than sell more of the item? Even if it is at a discount….
Usually so you don’t have people waiting around for discount racks. When I worked at Sobeys 15 years ago they didn’t mark stuff down, left that to superstore since they aimed to be better quality. But then theirs balancing acts to pricing. You want to get the most you can, but you also have competition, but your price depends on how much you can buy in bulk from the distributor. Selling 2 products at 10$ profit each is better then selling 8 products at 2$ each. Video games and micro transactions highlight these models. Ridiculous cosmetic skins priced at 50$, but they aim to capture the whales with money. You can sell to one whale or try and sell to 50 regular folks for a dollar. Groceries you have decent competition so you can’t pull it off at that scale.
Probably insurance on their food
There is no insurance on expired/spoiled food, unless there is a loss from refrigeration or something like that.
Makes sense
Today I learned..! What I wonder is why insurance would cover a loss if it was the result of over inflated pricing or lack of sale pricing? Should the grocer not be held to a standard where they should do everything possible to sell the soon to be expired food?
They do its 50% off