Raising the price just before a "discount"

[SatNavSaysStraightOn]

There's a landmark case going through the courts here at the moment. It's to do with the supermarkets raising prices for a few days before they claim a discounted price, only the new discounted price is actually more expensive than before. I'm sure we've all seen it. But here the ACCC is trying to do something about it. They've taken 1 supermarket to court and have other cases lined up against the other major supermarkets (there's not much choice is Australia, Coles, Woolworth, Aldi, IGA and that's about it, not counting Costco who keep my fuel prices down).

Coles accused of 'planned' campaign to mislead Australians

Example:

For a period of almost 300 days between April 2022 and February 2023 Mr Rich told the court that Coles offered a 1.2 kilogram loaf of Nature's Gift Wet Dog Food for $4.

A can of Nature's Gift dog food on a white background. The pricing of this Nature's Gift dog food was the focus of the ACCC's opening arguments. (ABC News: Patrick Stone). Then for seven days the price rose by 50 per cent to $6.

On the eighth day the price was set at $4.50 — 13 per cent more than customers had been paying for all but seven of the previous 303 days — with Coles labelling the product "Down, Down".

Another example the court has heard about is

For example, the regular price for a box of Strepsils was $5.50. This price remained on the product for more than 640 days before being increased to $7 for 28 days, then reduced during a "Down Down" promotion.

The sales ticket customers saw for Strepsils showed a "Down Down" price of $6.00 and a "was" price of $7; however, that was 9 per cent higher than the regular price of $5.50

I'm sure we've all seen it, but what do you make of it?

Do you know what price you paid for something a month ago? Would you notice that it was now more expensive despite the claimed discount?

 

[badjak]

I will know for some items.
Not for others.

What always surprises me here is that "bulk" packaging is very often more expensive than small amounts, but nobody else seems to notice

 

[Barriehie]

Those behaviors are regulated, theoretically, here so it's not supposed to happen. I've not seen it.

 

[SatNavSaysStraightOn]

I think they're meant to be regulated here as well, which is the reason behind the court proceedings.

There have been a few interesting developments overnight.

A senior Coles manager has conceded the supermarket giant worked with a supplier to make a product more expensive while still claiming to have discounted it, admitting the company raised its price between specials only so it could keep it on its “Down Down” promotion.

Coles’ manager of health products Matthew Hankin told the Federal Court on Thursday that the company’s March 2022 decision to increase the cost of Colgate toothpaste from $5.50 to $7 for four weeks before marketing it as Down Down to $6, was a deliberate strategy.

Coles manager admits chain only increased product’s price to claim discount

On 10 February 2023, two days after the dog food had increased to $6, Carroll emailed then-head of pricing and value Chris Reid, asking for advice about how to be more competitive with Woolworths in selling the product, which had a price of $4.50. Reid told Carroll the price could be lowered to compete with other retailers once a four-week window at $6 had passed, but not advertised as a Down Down special, as it wouldn’t be “in the spirit” of Down Down.

 

[Gone Hiking]

I see it all the time, not just on food, but on everything. Our annual Black Friday sales are notorious for it.