Friday, May 16, 2008

Same brand of rice, very different prices (A real life example of price discrimination? Or the effects of inflation?)

TODAY Online (15 May 2008)

YOU could be paying up to 50 per cent more for the same bag of rice depending on where you buy it from, a survey by the Consumers Association of Singapore (Case) has found.

Checking on the regular price — before any discounts — of fragrant rice at supermarkets/hypermarts over May 6 and 7, the consumer watchdog found some huge price differences.

The biggest disparity was for a 10kg bag of Golden Phoenix Fragrant Rice, which cost $18.80 at Prime but $28 at Sheng Siong.

Among the 5kg packs, Golden Peony Fragrant Rice was $9 at Cold Storage but $12.80 at Prime, Mustafa and Carrefour.

In all, 10 brands of fragrant rice were examined across eight randomly-chosen retailers: Carrefour at Plaza Singapura, Cold Storage at Harbourfront Centre, Giant at Vivocity, Mustafa at Little India, NTUC FairPrice at Clementi Central, Prime at Hougang Ave 1, Sheng Siong at Ten Mile Junction and Shop 'N' Save at Toa Payoh Central.

"We were quite surprised by the big differences," said Case's executive director Seah Seng Choon. "But it is the commercial decision of the supermarkets. They have different cost structures, different target customers and ... different locations."

Sheng Siong's managing director Lim Hock Chee, whose Ten Mile Junction outlet had the highest prices for most of the brands surveyed, said perhaps other supermarkets were selling rice from older stock, which would have been cheaper.

"Our stock of rice is new, so we are using the latest prices," he said. "Our stock sells fast because we don't order a lot. We need to keep warehouse space for our house brands."

Its Royal Golden Grain Premium Fragrant Rice retails for $12.30 and its Nang Rum Thai Fragrant Rice for $9.30, for a 5kg bag.

Mr Lim also noted that while Case had listed Sheng Siong as selling a 5kg bag of Golden Phoenix Fragrant Rice at $15, the price was actually $13.20.

Prices at retailers may have changed since the survey was done. For instance, when Today visited Giant yesterday, the regular prices of a 5kg and 10kg bag of Golden Pineapple Fragrant Rice were $10.70 and $21.20, respectively. Case had listed the prices as $9.64 and 19.40.

House brands continue to be cheaper, the survey found. FairPrice Thai Fragrant Rice (5kg) was the cheapest at $6.60, while First Choice Fragrant Rice (5kg) at Shop 'N' Save and Cold Storage was the priciest, at $9.10.

NTUC FairPrice has touted its house brands as being at least 10-per-cent cheaper than comparable national brands. And last week, Today reported how the supermarket, to keep rice prices low, has been advising customers to buy no more than five 10kg bags of rice each.

While consumers were shocked at the huge price differences, those Today spoke to would not change their choice of supermarket.

Housewife Pooja Dutt, 31, gets her rice from Giant as it is convenient. She said: "It is too much a hassle to go elsewhere ... petrol and time still makes up for it at the end."

Customer service officer Audrey Koh, 28, said: "The fluctuating prices are so confusing that I don't really keep track anymore. I am surprised such basic staple like rice does not have a fixed price control system."

But the consumer watchdog will not go beyond surveying prices — Case will not interfere with a commercial decision, Mr Seah said. "We leave it to consumers to decide."

Case will continue to periodically conduct surveys on individual items.

Early this month, it released a survey of the prices of budget items at eight supermarkets.

Question
Explain why prices for the same brand of rice may vary between different locations; and consider what effect this may have on consumers.

Updates: Case checks on rice price: right or wrong?

10 Comments:

Blogger Unknown said...

pandora charms
moncler coats
coach outlet online
canada goose outlet
celine outlet online
louboutin outlet
ugg boots
burberry outlet
christian louboutin shoes
louboutin shoes
zhi20161230

10:07 AM  
Blogger Unknown said...

coach outlet online
michael kors handbags
lions jerseys
ralph lauren
nba jerseys
ugg outlet
michael kors handbags outlet
oakley sunglasses
nike air huarache
hugo boss sale

3:16 PM  
Blogger raybanoutlet001 said...

reebok shoes
miami heat jersey
armani exchange
nike huarache
fitflops shoes
nike blazer pas cher
michael kors outlet
tennessee titans jersey
ugg boots
oakley sunglasses

10:37 AM  
Blogger lettyharry said...

Really inspirational to hear someone pursuing their dreams and becoming successful instead of following the traditional path. I have read your article about This topic. I think it's good and impressed to know your service. Thanks for share this Information.
โปรแกรมขายปลีก

5:17 PM  
Blogger Unknown said...

This blog aware me about different programs which can become very useful for our friends and kids. Few websites provide combined courses and few of the are separately for single subject. Glad to get this information.
เห็ด หลิน จื อ แดง สกัด

1:50 PM  
Blogger Unknown said...

ralph lauren
coach outlet
running shoes
coach outlet
michael kors outlet
jordans
pandora jewelry
tod's shoes
nike air max 1
jordans
20183.24wengdongdong

9:54 AM  
Blogger Unknown said...

qzz0615
heat jerseys
uggs outlet
ferragamo outlet
ysl outlet
saucony shoes
oakley sunglasses
nets jerseys
dior outlet
michael kors outlet
cheap football shirts

4:13 PM  
Blogger Unknown said...

www0706
polo ralph lauren
ralph lauren polo shirts
ugg boots
tory burch outlet
air jordan 4
links of london
gucci outlet
soccer shoes
cazal sunglasses
nhl jerseys


8:55 AM  
Blogger qqqqqq said...

0822jejeIl y a asics gel saga homme beige beaucoup d'autres marques aussi. L'ensemble de Nike que vous avez peut-être été basket nike wmns air max 1 vt qs noir au cours des deux dernières années se désintègre dans les coutures. chaussure homme nike presto ultra Le pilote professionnel Nike VR DriverNike VR est principalement un club air jordan 11 low citrus price de golf en titane solide à quatre pièces asics femme gel lyte courir en utilisant une couronne mince en plus d'un canal de Adidas Zx Flux Pour Homme compression repensé, en plus d'un nombre beaucoup plus de traits basket nike air max thea print bleu femme qui feront de cette une amélioration marquée plus que l'année dernière VR STR8-Fit basket new balance homme pas cher Tour.

10:48 AM  
Anonymous Obat Radang Usus Buntu Tanpa Operasi said...



The article is good. Also visit my article, read and share too. God willing useful. :)

Cara Mengobati Penyakit Tipes yang Kambuh
Cara Menghilangkan Bintil di Mata
Obat Benjolan di Paha Sebelah Kiri/Kanan

10:46 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home