Tarjoustalo - good example

harryc · Post by **harryc** » Tue Nov 18, 2014 2:38 pm

I had started a thread on Tarjoustalo in September on how I couldn't figure out that company's ads.

Here's a prime example of how they operate totally in the dark - or - more cynically - think their potential customers do.

Yesterday I got their flyer giving price of 10 Kotitila eggs for 89 cents - 55% off. Lidl hs been selling the very SAME eggs for 1,09€ for months and months and had a package of 15 for 1,39€ for last Saturday's special.

Don't these companies do any comparative shopping? That used to be a key part of retailing.

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Upphew · Post by **Upphew** » Tue Nov 18, 2014 3:22 pm

harryc wrote:I had started a thread on Tarjoustalo in September on how I couldn't figure out that company's ads.

Here's a prime example of how they operate totally in the dark - or - more cynically - think their potential customers do.

Yesterday I got their flyer giving price of 10 Kotitila eggs for 89 cents - 55% off. Lidl hs been selling the very SAME eggs for 1,09€ for months and months and had a package of 15 for 1,39€ for last Saturday's special.

Don't these companies do any comparative shopping? That used to be a key part of retailing.

55% off of their price, not Lidl, not Stockman, not Prisma.

harryc · Post by **harryc** » Tue Nov 18, 2014 3:41 pm

55% off of their price, not Lidl, not Stockman, not Prisma.

Yes of course - I was saying they do their pricing 'in the dark - or think their customers buy in the dark - no retail manager does a big flyer campaign without checking what the main competitors are charging for the very same product. The result is that Tarjoustalo's credibility goes to H in a handbasket - as was my original premise in September.

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At the same time the brilliant retail manager is managing to tell the market that the regular price is almost DOUBLE that of Lidl. Clever. Makes you want to rush there and see what other 'bargains' they have.

Rosamunda · Post by **Rosamunda** » Tue Nov 18, 2014 10:32 pm

....except that they ARE cheaper than Lidl, for eggs

I don't get your point. Just compare the price per kilo.

(BTW, you mightn't buy those eggs if you saw the conditions in which they are produced...)

harryc · Post by **harryc** » Tue Nov 18, 2014 10:49 pm

....except that they ARE cheaper than Lidl, for eggs

I don't get your point. Just compare the price per kilo.

(BTW, you mightn't buy those eggs if you saw the conditions in which they are produced...)

Yes cheaper as a special offer - except they are telling the world that their NORMAL price is almost DOUBLE what Lidl's NORMAL price is! Hardly smart.

The eggs are from a Finnish farm - Kotitila - and from what I recall, Finnish conditions have been above average - and there was beyond that a big change a couple of years ago due to EU directive. Also Finland is - from what I have heard - one of 2 countries (other being Sweden) where one doesn't need to fear salmonella - so home-made mayo possible.

wolf80 · Post by **wolf80** » Wed Nov 19, 2014 4:02 pm

There is no reason for a company to be competitive with the prices of all articles in stock. One store has cheap eggs, the other has cheap milk. That is a valid and completely normal strategy. You are luring people in your shop with certain offers, and then make more money on items they buy along. And another store does the the same just with different items.

The same goes to making an item's original price higher so that the reduction seems much higher than it is - normal strategy, all over the world.

Not sure what your problem is exactly - if you want all the cheap offers YOU have to compare prices and go from shop to shop to buy only the cheap items. Believe me, the stores know exactly how much the items cost at their competitors. If you only buy at one store - seems this company's strategy worked on you.

harryc · Post by **harryc** » Wed Nov 19, 2014 5:24 pm

Sure

All agreed -as per category.

But smart retailers do not show their regular price to be double of a well-known competitor's regular price - especially a product that is EXACTLY the same - any price conscious shopper sees a red flag for other products and is wary of that company in the future. It's some kind of cardinal rule that is also told in 'Retail Selling 101.'

in any case, it is certainly so that the consumer needs to always be on their toes - as the Romans said: 'Caveat Emptor.'

interleukin · Post by **interleukin** » Thu Nov 20, 2014 11:25 am

r regular price to be double of a well-known competitor's regular price - especially a product that is EXACTLY the same - any price conscious shopper sees a red flag for other products and is wary of that company in the future

Most of the population doesn´t spot it or even likely doesn´t care enough to bother changing their shopping habits.

007 · Post by **007** » Thu Nov 20, 2014 3:19 pm

interleukin wrote:
r regular price to be double of a well-known competitor's regular price - especially a product that is EXACTLY the same - any price conscious shopper sees a red flag for other products and is wary of that company in the future
Most of the population doesn´t spot it or even likely doesn´t care enough to bother changing their shopping habits.

yes, esp. when the price of the product is not that huge. If it was a high involvement product, harryc's logic works every time. about daily consumer products, price differences are visible right in front of our eyes all the time as we visit S and K, Lidl whatnot... so it's not a hidden fact to the consumers that the prices for the same product at different shops are different.. it's just that lots of efforts, resources aren't spent on when buying them.

harryc · Post by **harryc** » Fri Nov 21, 2014 12:33 pm

Interesting paradox in that expenses of these 'not so high price' and 'low involvement' items can add up to a significant % of the budget.

mmkhi · Post by **mmkhi** » Thu Nov 27, 2014 12:41 am

harryc wrote:Interesting paradox in that expenses of these 'not so high price' and 'low involvement' items can add up to a significant % of the budget.

Sure they know it well, quick check reveals:

Lidl -> Schwarz Gruppe -> 99.9% owned by Dieter Schwarz, ranked 23rd richest person in the world (Feb, 2014)

Tarjoustalo -> Tokmanni Group -> owned by Nordic Capital, Fund VII, office at Jersey (which "is not required to implement EU Directives on such matters as movement of capital, company law or money laundering" or simply said tax haven) though their adviser is paying some taxes in Finland (http://www.hs.fi/verokone/henkilo/1969F ... 20Campbell).

In fact, it is not so difficult to grow chicken for eggs

Karhunkoski · Post by **Karhunkoski** » Sun Nov 30, 2014 6:10 am

harryc wrote: But smart retailers do not show their regular price to be double of a well-known competitor's regular price - especially a product that is EXACTLY the same - any price conscious shopper sees a red flag for other products and is wary of that company in the future. It's some kind of cardinal rule that is also told in 'Retail Selling 101.'

I disagree. UK retailers regularly apply temporary high pricing to products, just so they can offer large "discounts" later.

Karhunkoski · Post by **Karhunkoski** » Sun Nov 30, 2014 6:10 am

Rosamunda wrote:(BTW, you mightn't buy those eggs if you saw the conditions in which they are produced...)

Popeye · Post by **Popeye** » Thu Dec 04, 2014 5:46 pm

Couple of years ago, thousands of shoes washed upon a North sea beach after a ship lost several containers in a storm. I was there to grab some shoes for free and i noticed that many shoes had price tags on them. This is what the price tag said: DISCOUNT! From 49,99 for 29,99.
These shoes were brand new and came straight from the manufacturer.

Just look at the price you have to pay and forget what it has been discounted from.

harryc · Post by **harryc** » Thu Dec 04, 2014 6:06 pm

Right - I know that goods can be ordered with whatever price information you like already attached - ''custom' discounting.

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