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Dollar-stores overcharge customers while promising low prices

theguardian.com

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Re: Dollar-stores overcharge customers while promising low prices

#91
post #3

“In one court case in Ohio, Dollar General’s lawyers argued that “it is virtually impossible for a retailer to match shelf pricing and scanned pricing 100% of the time for all items. Perfection in this regard is neither plausible nor expected under the law.”” Sorry—-what? Isn’t that one of the fundamental basic jobs to be done and expectations of a retailer? You put physical things on display for sale, you mark price…

An easy test for this is how often the price at the register is higher vs lower than the marked price. If it's close to 50%, then ok, it's a mistake. But if it's higher...

Re: Dollar-stores overcharge customers while promising low prices

#92
post #2

23% of items are rung up at a higher amount at the register than what it says on the shelf, yet North Carolina law caps penalties at $5,000 per inspection, offering retailers little incentive to fix the problem. In other words, regulatory capture at its finest, over the backs of the poorest in the country.

I don't know NC law. Does it have an "invitation to treat" practice there where prices marked are a customer relations issue rather than a legally-binding offer? To attain change, enough people have to: 1. Correctly identify the source of their misery, because it ain't [insert scapegoats]. 2. Find others who agree with them. 3. Make a plan for effective countering of 1. 4. Use intestinal fortitude and endure temporar…

I don't think the laws of the specific jurisdiction matter. In every US jurisdiction, the prices aren't completely legally binding (what if the previous customer changed the price tag?). In ~every US jurisdiction, if you systematically show one price but charge customers another, that's an offence.

So intent matters. What would decide an individual case is not the exact characterisation of the laws on the books, but how sympathetic a regulator or a judge is to the supermarket's claim that these things just happen sometimes.

Re: Dollar-stores overcharge customers while promising low prices

#93
post #86

Earlier quoted context omitted.

Well, why don't the ethical non-predators open up shops in economically disadvantaged areas and offer non-predatory prices? The margins must be huge if they really are predators.

Good question, was on my mind too. The problem I could see is Walmart style - the predator will beat the prices of the non-predator down until the non-predator goes out of business, then raise their prices again. They can do this because they are operating in other areas with predatory prices, giving them the ability to operate at a loss, and relying on the fact that at least some of those areas are not being challen…

Does this actually happen? If a community opened up a co-op shop that started eating into the revenue of a dollar store, would the dollar store company try to fight back, or would they just exit that market?

Yes, I guess well capitalize companies could offer unrealistically low prices, but on the other hand, any kind of co-op or community driven organization has the benefit of not needing the margins. Dollar store investors are there to make a buck, if their capital isn't getting reasonable returns will ultimately exit the business and move somewhere else.

Re: Dollar-stores overcharge customers while promising low prices

#94
I wish I could be surprised and I can see this happening in many places. This type of 'fraud' was predicted when we allowed the stores to stop marking items with the price.

Many places were I shop, hardly any products are lined up with the price attached to the shelves, plus the descriptions of some items are confusing due to the multiple names for the same thing.

Time to force stores to mark each item with the price once again.

Re: Dollar-stores overcharge customers while promising low prices

#95

At a certain point we have to acknowledge that a huge share of our economy is just raw predation.

Always has been.

It really wasn't this bad in the past on a whole. There were plenty of bad actors, but EVERY actor wasn't bad.

Just look at food recipes American corporations feed to Americans, and their different recipes for Europe that look more like the American recipes circa the 1990s. Everything in America is optimised to the max permissible bad action.

Re: Dollar-stores overcharge customers while promising low prices

#96
post #3

“In one court case in Ohio, Dollar General’s lawyers argued that “it is virtually impossible for a retailer to match shelf pricing and scanned pricing 100% of the time for all items. Perfection in this regard is neither plausible nor expected under the law.”” Sorry—-what? Isn’t that one of the fundamental basic jobs to be done and expectations of a retailer? You put physical things on display for sale, you mark price…

> When on earth did we get into a world where that absolutely fundamental most basic task is now too burdensome to do with accuracy?

It always has been this way since barcoded stock keeping units because of the problems identified by CAP Theorem [0]. Since the price data of an object must exist in two locations, shelf and checkout, the data is partitioned. It is also relatively expensive to update the shelf price since it depends on physical changes made by an unreliable human. Even if all stores used electronic price tags there will a very small lag, or a period in which prices are unavailable (or a period of unavailability like an overnight closure).

It would be interesting to understand at what point of shelf/checkout accuracy would lead to what increases in overall prices [1]. That is to say that pricing information has a cost: a buyer must bring the item to checkout to find out the true cost in the case of authoritative checkout, or the clerk must walk to each shelf in the case of authoritative shelf.

Once upon a time, each item in the store was labeled with a price tag and the clerk typed that tag into a tabulation device in order to calculate tax and total. The advent of the bar code lead to shelf label pricing since the clerk needn't read a price from each item, leading to the CAP Theory problem of today.

I suppose that the future will bring back something similar to individual price tags in the form of individual RFID pricing. This way each individual item on a shelf can be priced in a way that is readable by the buyer and the seller in the same manner.

0. https://en.wikipedia.org/wiki/CAP_theorem

1. https://en.wikipedia.org/wiki/Pareto_efficiency

Re: Dollar-stores overcharge customers while promising low prices

#97
Cash strapped, but also presumably more likely than the general population to be innumerate or have dyscalculia or dyslexia.

It's the same bullshit that allows discount prices on Black Friday or during January sales to be completely misleading.

In the UK we are much tougher on this kind of manipulative pricing, but you still find manipulative things, like being unable to find the price-per-100g on discounted items and "clubcard" items, or bulk buys that end up having higher unit costs and yet seem not to be errors.

Re: Dollar-stores overcharge customers while promising low prices

#98
Massachusetts has a quite prominent law against this.

"When buying groceries—food and non-alcoholic beverages, pet food or supplies, disposable paper or plastic products, soap, household cleaners, laundry products, or light bulbs—you must be charged the lowest displayed price, whether on the sticker, scanner, website, or app.

If the lowest price you saw for an item is $10 or less, and that lowest price is not what you were charged or not what appeared on the in-aisle price scanner, the first item should be FREE. If the lowest price you saw for an item is more than $10, and that lowest price is not what you were charged or not what appeared on the in-aisle price scanner, you should receive $10.00 off the first item."

https://www.mass.gov/info-details/consumer-pricing-accuracy-...

Not to say it's not happening in a Mass based Dollar Stores but you could be walking away with a lot of free stuff and it would be enough of a deterrent to stomp out the practice. I've had it happen at grocery stores usually at their suggesting.

Re: Dollar-stores overcharge customers while promising low prices

#99
post #75
post #2

23% of items are rung up at a higher amount at the register than what it says on the shelf, yet North Carolina law caps penalties at $5,000 per inspection, offering retailers little incentive to fix the problem. In other words, regulatory capture at its finest, over the backs of the poorest in the country.

Regulatory capture is when a large company encourages stronger regulations that small competitors cannot afford to satisfy. Here the issue is regulation that is too weak, not too strong.

No, that’s just one form of regulatory capture. If this legislation is a result of lobbying from retailers opposing imposing meaningful fines, particularly if the state of things before its adoption was that penalties from failed inspections were often higher, then this is regulatory capture.

Re: Dollar-stores overcharge customers while promising low prices

#100
post #42

Even if they accurately charged shelf prices, these places are still a ripoff targeting the vulnerable. The list price is low but the per-unit price is astronomical compared to grocery store prices.

Have you ever been to a dollar store? Its much cheaper for the same items than a regular grocery store. Also not everyone needs a Costco sized tub of mayo. You test it yourself go by a standard sized candy bar at safeway/alberstons and then at a dollar store. Bottle of coke. Birthday card. Better yet compare the cost spices. Try to buy bay leaves at regular grocery store for under $5.

Spices are pretty much universally horribly overpriced at grocery stores.
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