From a consumer standpoint, the revelation that you can pay 2 to 3 times the cost for the same product at one store versus another raises some red flags.
The following CP24 article by Hannah Alberga has made many consumers wonder if they are getting gouged by the grocery store with the higher price. A 1% to 5% variance is not too disconcerting for many shoppers. However, in the example below, how can “a bag (450g) of Italpasta spaghetti costs $1” at Dollarama, while the identical product at Loblaws is “priced at $4.49 – more than four times the cost.”
As a buyer for Dollaram or Loblaws, how do you explain the chasm price difference for the same product to the consumer? Are the buyers at Dollaram that much better than the buyers at Loblaws?
One crucial point to remember is that you are not talking to another procurement professional when you provide an answer. You are talking to the average consumer who has only recently gained a new appreciation for supply chains because of the pandemic.
Here are a few other examples from the article:
RICE
Ben’s Original rice at Dollarama costs $1.75, but only contains 132 g, slightly more than an average serving size.
The same product at Loblaws costs $4.49 for one bag, $9.99 for three bags or $10.49 for 2.2 kg.
BREAD
A loaf of Wonder Bread (675 g) – white and whole wheat – costs $2.50 at Dollarama.
The identical product at Loblaws costs $3.99 for a loaf or $7 for two loaves.
So, what would you say to a consumer? How would you explain the price difference without harming your store’s brand?
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Procurement Insights
As a procurement professional, how would you answer this question: Why do some groceries cost half as much at Dollarama as Loblaws?
Posted on September 10, 2023
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From a consumer standpoint, the revelation that you can pay 2 to 3 times the cost for the same product at one store versus another raises some red flags.
The following CP24 article by Hannah Alberga has made many consumers wonder if they are getting gouged by the grocery store with the higher price. A 1% to 5% variance is not too disconcerting for many shoppers. However, in the example below, how can “a bag (450g) of Italpasta spaghetti costs $1” at Dollarama, while the identical product at Loblaws is “priced at $4.49 – more than four times the cost.”
As a buyer for Dollaram or Loblaws, how do you explain the chasm price difference for the same product to the consumer? Are the buyers at Dollaram that much better than the buyers at Loblaws?
One crucial point to remember is that you are not talking to another procurement professional when you provide an answer. You are talking to the average consumer who has only recently gained a new appreciation for supply chains because of the pandemic.
Here are a few other examples from the article:
RICE
Ben’s Original rice at Dollarama costs $1.75, but only contains 132 g, slightly more than an average serving size.
The same product at Loblaws costs $4.49 for one bag, $9.99 for three bags or $10.49 for 2.2 kg.
BREAD
A loaf of Wonder Bread (675 g) – white and whole wheat – costs $2.50 at Dollarama.
The identical product at Loblaws costs $3.99 for a loaf or $7 for two loaves.
So, what would you say to a consumer? How would you explain the price difference without harming your store’s brand?
30
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