can some one please explain this

Discussion in 'Food & Cooking' started by dagger, May 7, 2017.

  1. dagger

    dagger

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    I was watching foodsaver demo on QVC and he pointed out chickem is cheaper by the pound in a family sized pack. Thinking about this and it doesn't really make sense, its the same chicken. How does buying 7 pack cost less than 2 pack, packaging can't add that much cost besides you could buy more smaller packs. As for packing bigget vs smaller cost can't be big deal so why is bigger family cheaper than smaller packs? Both are prepared the same
     
    Last edited: May 7, 2017
  2. pete

    pete Moderator Staff Member

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    The simple answer is that it brings more money to the top line (revenue).  Sure they might be making a  little less per pound, but ultimately, by buying that family pack, you are spending more money.  And trust me, they are still making a profit off of that family pack.
     
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  3. heidicookssuppe

    heidicookssuppe

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    Labor is one of the most expensive, if not the most expensive, cost factors in the foods we buy in the supermarket.  The fewer times something is handled the less the labor costs.  It is cheaper for the store to stock one 10 lb. bag of chicken once and sell it to me once than it is to stock and sell multiple, smaller packages of chicken.  Space in the truck, in storage, and on the shelf also has a cost.  The 10 lb. bag takes less space in transit, storage, and display per pound of chicken.  

    You do need to watch prices, however.  The biggest package is not always the cheapest.  That's why comparing unit cost (cost per ounce, for example) is so important.  
     
  4. french fries

    french fries

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    In just about every industry you get a discount when you buy larger quantities - even when labor is the same. Think of it from the seller's point of view: would you rather sell single donuts all day long? Or dozen of donuts all day long? Therefore, does it not make sense to you to price the dozen less than 12x the single donut price?

    You're also encouraging people to buy more. Maybe they just wanted to buy 7 donuts and end up purchasing 12. Or they wanted 4 pounds of chicken and end up buying 7.
     
    Last edited: May 7, 2017
  5. flipflopgirl

    flipflopgirl

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    @Pete  hit the #1 reason for big box packaging.

    Those big shots at corporate (as well as those on Wall Street) are not looking at how many pieces are sold but how MUCH $$$ your store (or group for the divisional managers) is bringing in....

    This is called value added and is a great little marketing tool.

    Those so called "great deals" also bring in more shoppers and a high % of those will buy more than just the family pack of leg quarters.

    They may need seasonings (huge profit item)... same for bread and other bakery items....the list goes on.

    I have both SAMs and Costco cards (both are the business type).

    They are in the fisherman's benefits contract package but rarely used (by us anyways).

    He stops in once every few months and picks up two things.... benadryl (generic 600 count at $4.99) and a grab of bananas (pricing is competitive but not important as we go thru lots of bananas so why not while he is there).

    I will stop in to look at the peaches in June...they are usually huge and perfectly ripe (by the case and again pricing is moot as the quality is usually superior).

    One of my strengths is being able to remember pricing from store to store.

    I also keep a par level in my pantries and only stock extra if the savings are huge (good butter is usually half price during the winter holidays but the prices on spices and dried fruit are usually jacked up to balance the $$$ in the grand scheme of things).

    If a 12 count jumbo pack of paper towels going to affect my weekly budget (even if I could save a buck) I will weigh the pros and cons...how many remain in par...will I have company... can I save the same amt (or more) if I pick up 2x 6 count jumbos at the $ store.

    I could talk about this forever but will spare ya'll lol.

    mimi
     
    Last edited: May 8, 2017
  6. mike9

    mike9

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    With family packs they move more product meaning less product ends up in the dumpster.