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Going where the value is

Rear view of man walking along aisle of supermarket

By Keith Berg C&I Editor at Large

I had occasion to visit Costco’s big warehouse in Sydney’s West a few days ago.

As I was waiting for the carpark elevator, I was joined by a young man labouring behind a heavily loaded trolley. Costco’s trolleys are huge and, on closer inspection I noticed that his was loaded with what looked like about 50 packs of 24 Mount Franklin water.

“You have a store do you?” I asked. The reply came in the affirmative.

“How come you don’t buy from one of the wholesalers?” I couldn’t believe the reply.

“If I buy from Coke,” the young man said, “I pay $23 per pack of 24. Here I pay $9 normally, but $7 when it’s on special.”

Little wonder then that so much store stock is being sourced from supermarkets at tiny margins for manufactures. And the manufacturers HAVE ONLY THEMSELVES TO BLAME

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