In the Grocery Store
Recently after shopping the Grocery Department, a customer came up with an excellent question—one we hear from time to time. She wanted to know more about our pricing policy and gain a better understanding of why we do the things we do.
The customer said she was a long-time shopper who loved the Co-op for many reasons, not the least of which being that we tend to avoid gimmicky pricing like “Buy One Get One Free.” What the Co-op does do, however, which she wisely pointed out, is offer “5 for $3” and similar deals. She said doing the math, often with children in tow, was overly complicated and in general a real turn off, and she wanted to know why we, of all people, would do it in the first place.
Multiple Offers, Gimmicks, and Doing the Math
The sharp customer was right on the money, in that the Co-op Food Stores does strive to avoid gimmicky or misleading pricing. We do, however, make limited use of multiple offers—as in the “5 for $3” example the customer pointed out. In fact we have, on a very limited basis, experimented with “buy-one-get-one” or “two-for” promotions. Before going into this further, however, I want to address the concern about “having to do the math.”
We have a very specific policy regarding our signs and advertising, which requires, in effect, that the math be done for the customer. That is to say, the savings is always calculated on a per-unit basis—in other words, the cereal is “3 for $6, save $ .80 each.”
Additionally, it should be noted that the customer is under no obligation to buy a certain number of items in order to realize the savings. Consumer-protection laws prevent retailers from doing this, unless it is specifically stated in the sign and/or advertisement. For example, chain stores often run a soda promotion along the lines of “buy 4 12-packs, save $X,“must buy 4 to realize savings.” This is something the Co-op Food Stores will never do. If you ever see a sign that does not show the savings per unit on a multiple-unit offer, please bring it to the attention of a staff member or service desk staff member immediately. This should never happen.
It is our intention that by listing the savings per unit, we are reinforcing the notion that the customer is not obligated to buy a certain number of items in order to realize the savings.
Why We Do the Things We Do
At this point, a logical question would be, “If the multiple unit pricing practice can be confusing or misleading why do you do it at all?” Good question.
In short, because customers have been trained to seek out such offers, especially in certain categories like yogurt, cereal, packaged cheese, and produce. Also, NOT doing so would eliminate opportunities to offer exceptional deals to our members and customers. Manufacturers like to offer these deals because it drives large volumes of product. Customers tend to take advantage of these offers and stock up. Given the recent economic changes, many shoppers have made it a new routine to visit multiple stores, stocking up on such deals. If the Co-op ignores this opportunity it does so to the detriment of its members.
Learn More
Our Co-op is a grocery store, after all, and has to compete with other grocery stores too. But a cooperative is different from chain store. Ever noticed how, in chain stores, the checkout aisles are always loaded with candy, in the hopes that hungry children will pester weary parents into spending more money? Speaking of parents shopping with children, have you ever noticed that chain stores put high-sugared cereals at a child’s eye level? These are common practices you won’t find at the Co-op. To learn more, check out how the cooperative difference influences the things we do.
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