Part 4 by ambrosen (4.00 / 1) #21 Thu Aug 23, 2007 at 11:41:27 AM EST
Is quite likely to be that the consumer prefers to pay higher prices. They are after all buying exclusivity, and there's no point for the shop in offering something at standard markup when it's actually likely to sell more if it's premium priced.

The UK has an unusually efficient supermarket sector, so I doubt that's the case. And small whisky specialists in England? Well they're going to be wanting to make a living, aren't they? And they'd rather compete on service and tasting than price. So it looks more like perverse incentives.

[ Parent ]

Seems unlikely by R Mutt (4.00 / 1) #23 Thu Aug 23, 2007 at 12:03:48 PM EST
People generally want to pay less for an identical product.

But let's take a look at what happens if you shop around for the popular 70cl Balvenie Doublewood 2 Year Old

You can buy a bottle at Tesco for £26.99.

Or you could buy direct from the distiller for £26.99.

You could go to an off-licence chain like Oddbins, and pay £26.99.

However, if you go to posh grocery deliverers Ocado, you pay more. £27.00

If people wanted to pay a bit extra for poshness, you'd expect the posher retailers to charge a bit more.

To me, the way the prices are so close, suggest either:

  1. A wonderfully efficient market
  2. Price collusion


[ Parent ]

Login
Make a new account
Username:
Password: