Quote:
Originally Posted by b0son
It amazes me that not only do we have a duopoly, but they are also allowed to peddle their own brands. ACCC must surely be asleep at the wheel.
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Its normal, surprised we don't see more of it here. I spent some time working for a big supermarket in the UK. The margin on branded products were really really small. Employees got 10% off groceries, and basically they made a loss if we bought branded products.
Own brand products however, they made a 50% margin. Came from the same manufacturers and factories as the branded stuff most of the time, but just a bit lower quality e.g. smoked salmon, the branded got prime cuts nicely sliced, whereas own brand may have had some off cuts or maybe some slices that weren't sliced to perfection, all came from the same factory, that kind of stuff. The prices for own brand stuff was typically 30-40% cheaper. It got a lot of people through the GFC austerity measures at the time. Own brands are awesome if done right, everyone wins, company makes better margins, and people who want a cheaper but slightly lower "quality" product were able to do so. Brands never really complained either, cos there were enough toffs who wanted the high end stuff.