What does 'Cost Price' mean?

Genghis

Tesco are running an extensive promotion where they are offering a range of goods (primarily alcohol, but also tins of biscuits, and other 'seasonal' products) for what they claim is 'cost price'.

They have run similar 'Cost Price Beer' promotions before, and I had always been 'wary' of this claim, primarily because I never felt that the prices were outstanding. However, on Saturday I looked into their promotion a little bit more.

For some items (Huzzar Vodka, I think), the item was 'R.R.P. €19.99', and 'Cost Price' €19.91. Another bottle of spirits was just 9c in the difference.

While I appreciate excise taxes and VAT make up a substantial part of the shelf price and that margins for supermarkets are ordinarily low, I refuse to believe that Tesco (or any other retailer, for that matter) would stock a €19.99 item for an 8 or 9c margin; especially one that involves additional security, etc to stock.

So, can anyone confirm what the 'cost price'of spirits are?

dod

That is a very good question. Either they are selling it at cost price, the implication being that they are ordinarily making less than half a percent margin, or they are misadvertising, in which the Office of the Director of Consumer Affairs should be interested?

parasite

get madsl on to it !