In Woolies yesterday the price of a tin of fruit salad was ;
Woolies own brand $1.50
Woolies select brand $2.50
SPC $3.50
be honest which one would you buy ?????????????
What is the difference in Product Quality if any, between all three.
I think you would have to buy one of each and do a Quality Check.
I worked for a major Bakery in the bread industry. Making Coles, and Woolies own brands as well as all the other Goodman Fielder Brands.
To meet the price the Customer wants to pay for Home Brand Products I can assure you the Quality of the Bread had to be reduced. Various minor Processes left out to reduce production costs. I can remember the Sales people bemoaning the knife edge profit margins on this stuff.
But when you have the possibility of losing shelf space for your own products at contract time renewal, of course, making their brands at an exceedingly low profit margin has to be done.
In the Long Term I think "The Market" is The Market. Best Price for similar Quality will usually win out.
-- Edited by elliemike on Monday 24th of February 2014 05:03:04 PM