If there is an existing thread on this subject then I apologise for neglecting to add to it.
I had an experience recently of the way at least one of our leading super markets encourages customers to part with their money in devious but legal ways. My chosen SM periodically has a promotion on ?cheap? fuel. If the customer spends more than £50.00 in the shop then a coupon is given entitling the said customer to 5p per litre off the fuel in the SM station. Looks good, hey ! Advertised cost 106.9p, less 5p = 101.9p.
I did so, but checked what the garage down the road was charging, 102.9p ? hence I saved 1p per litre.
At the end of the promotion the supermarket fuel cost fell to 101.9p, and the place down the road remained 102.9p - I still saved 1p per litre.
So, during the period of the promotion the loyal customers (spending £50.00 or more) saved 1p a litre on their fuel, and when the promotion was no more, still saved 1p per litre. But, during the promotion the passing trade (who didn?t notice the price until too late) paid 5p per litre more.
So, a win-win situation for the SM. Doubles all round !!
Edited by Pugugly {P} on 22/12/2007 at 20:13
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Nothing new. Supermarkets operate in a similar way across the whole range of products. Asda increased thousands of prices over the Autumn in preparation for the Christmas 'Rollback' promotion.
If every Asda 'Rollback' had been a continual discount they would be paying us by now!
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One of the supermarkets that ran that promotion also ran a cheapest fuel promotion. If you found fuel cheaper within 5 miles (I think) then they would double the difference. Had to go to customer services but if you were doing a shop it would be a few minutes to get £12 back. £0.05 x 2 x 60l.
Wonder if they still do it?
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Supermarket fuel prices near me are cheaper than anyone else, so when they also run the 5p a litre off, its a genuinely good deal as my mum spends £50 a week there anyway, so you keep the voucher and fill up next time you shop.
Cheapest unleaded around here is 102.9 which is at the major supermarkets, take the deal in and thats 97.9, which I certainly appreciate.
Infact, looking at it, when combined with the 5p a litre off, the supermarket fuel is 8p a litre cheaper atleast. Cynical? Not really as they dont require you to do anything more than you normally do.
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Added to all this, it's because of the supermarkets that most towns now have a dearth of filling stations - resulting in you having to drive out of your way to fill up these days
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"Added to all this, it's because of the supermarkets that most towns now have a dearth of filling stations "
The town where I was born in South Wales now only has one filling station. Tesco wanted to buy a closed down station and re-open but the owners of the only filling station beat them to it. They bought it and will not re-open it! And they are very expensive.
In this instance, Tesco were trying to bring competition to the area. Maybe not enough fuel bought to keep the others open but Tesco probably would have got better prices for fuel in the area.
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I subscribe to petrolprices.com and do keep an eye out on the prices locally. I also use the 5p/litre off vouchers for supermarket fuel when I get the chance. The local supermarket that runs this promotion is usually only 1 to 2p dearer than the cheapest garage locally (almost always the Total not far from here), so when you do use the 5p a litre off, you do genuinely get fuel 3 or 4p a litre cheaper than you can get it anywhere else locally.
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Shell Optimax (98 RON) near me is now 107.9 and Tesco Super Unleaded (99 RON) is now 105.9. Tesco 99 has always been just 1p or 2p cheaper than Optimax so when the 5p per litre money off vouchers kick in I make an effort to time my fill ups with a food shop. The clubcard points is a bonus. FWIW my car seems to run equally well on both and not quite so well on anybodys 95 RON fuel.
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My local Asda matches the price to any nearby filling station, currently 99.9 for 95 RON - with the Asda card 2p discount, always available, that's 97.9. I'd pay an extra 1p/litre for each RON number increase, but no more. If 95 RON gives less power, I just put my foot down more.
All retailers, including supermarkets, take advantage of consumers perceived value but in reality it's all "supply and demand".
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Bearing in mind that the major supermarket chains have just been done for price fixing, would anyone be surprised if they operated a cynical money off scheme on petrol?
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Don't know about money off schemes, but it seems to me that over the last few weeks it has been the case in our area (West Wales) that supermarket petrol is no longer guaranteed to be cheaper. A Shell station near St. Clears on the A40, usually 3 pence or so higher than Tesco Carmarthen, is now a penny cheaper, and the smaller "backwoods" stations aren't a great deal higher.
My cynical mind wonders if Tesco and the rest are holding their prices up (and therefore their profit margins) to pay for the anticipated fines issued for robbing farmers.
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