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Still getting screwed

by chassy @ 2008-07-23 - 16:11:33

 

 

Capitalism and monopoly – a means to an endgame?


 

I’ve always bemoaned behemoths such as Tesco for killing off the local shopping parades where you once could find a butcher, a baker, a greengrocer, a small grocery store and a newsagents.  ‘Capitalism leads to more choice’ I used to hear from Tory voices on TV, ‘better service' and 'competition drives standards up’.  Well, competition when keeping up with the latest techno gadgets certainly keeps them churning out ever more enticing resource-gobbling goodies, but as far as choice and better service goes, I think we’ve all experienced the truth of that.

 

Where I live, on the edge of a typical urban town, we used to have a newspaper delivery.  That was until Tesco took over the local ‘corner shop’ (itself part of a smaller but nearly as ubiquitous name-changing chain).  Tesco would not be doing newspaper deliveries.  We found a true local corner shop but soon that closed, they could never compete with the low prices Tesco force suppliers to accept.  Luckily, we found our local evening paper had its own delivery team.  All well and good, except Sundays.

 

Until recently my partner would go to a nearby garage for his Sunday paper.  This has now closed and whilst Tesco, who bought it, redevelop it into another of their ‘corner shops’, we have had to go to another Tesco a small distance away.  Well that’s no big deal really, unless you have an aversion to Tesco - it’s only till the more-local Tesco is up and running after all.  Well, the big deal is this.  Last weekend The Sunday Times bale from the Tesco a small distance away was burnt in an underpass so I had to go to the next nearest shop, another name-change chain.  As expected, everyone else had gone there too, so they were sold out.  I finally found one in the next borough, in a Co-Op.  Now I like Co-Op because it’s a pretty ethical store, but it’s a drive away so ecologically not sensible, but I’m glad I was pushed that way.  Recently I heard a comment attributed to Tesco saying their smaller stores were no dearer than the larger stores.  Well if that’s the case, I wouldn’t want to shop at their larger stores!!  Stopping to get some butter, I found Lurpak Light Spreadable was £2.50 in Tesco, and only £2.15 in Co-Op.  It’s bad enough they kill off all competition in the area so you have to drive 10 minutes just to buy your groceries using petrol you can only find now in a supermarket petrol station, but to have to pay 35p more for a basic food item if you don’t want to drive, some choice.


Harrumph!  I think I got that off my chest now...   … best not start thinking about the abolition of the10p tax band and Tesco using part-time below threshold workers so not paying employers national insurance for them whilst the welfare sector and national health service pick up the pieces once they're unable to work any longer...

 
 

A dad walks into a market with his young son.  The kid is holding a 50 pence piece.

 

Suddenly, the boy starts choking, going blue in the face.

The dad realizes the boy has swallowed the coin and starts panicking and
shouting for help.

A well dressed, attractive, but serious-looking woman in a blue business suit is sitting at a coffee bar in the market, reading her newspaper and sipping a cup of coffee.

At the sound of the commotion, she looks up, puts her coffee cup down on the saucer, neatly folds the newspaper and places it on the counter, gets up from her seat and makes her way, unhurried, across the market.

Reaching the boy, the woman carefully takes hold of the boy's testicles and starts to squeeze, gently at first and then ever more firmly.

After a few seconds the boy convulses violently and coughs up the coin, which the woman deftly catches in her free hand. Releasing the boy, the woman hands the money to the father and walks back to her seat in the coffee bar without saying a word.

As soon as he is sure that his son has suffered no lasting ill effects, the father rushes over to the woman and starts thanking her saying, "I've never seen anybody do anything like that before, it was fantastic.  Are you a doctor?

"No," the woman replies, "I work for the Inland Revenue"


 
 

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kirkykirky [Member]
2008-07-23 @ 16:22

Sadly I agree completely.

chassychassy [Member]
2008-07-25 @ 20:21

Well at least you made me happy agreeing! S'life I guess :(

Hope it's all good for you though :yes:

menhirmenhir [Member]
2008-07-23 @ 16:32

Pardon me for being frank, but you are propounding a totally urban centric view of life and one that follows the usual media hype with its inaccuracies. I have lived in both busy urban places and in extreme rurality where the choice was, take it, be fleeced, or leave it and travel hundreds of miles to get something.

All the main stores sing from the same business sheet including the store you call ethical, the Co-op. The difference between the other stores and the Co-op is, they are not practising emotional hypocrisy in the way the Co-Op does.

Where I live, I have found the Co-op expensive and with reducing choices. Much of what the store offers, I am not interested in purchasing.

We are glad that better standards of basic shopping have come within the reach of our remote communities; restrictive practices have pertained for too long and competition has been long overdue.

We have additional living expenses through poor transport infrastructure that urbanites have no notion of. Our fuel costs in all respects are above the national average, even without the current increases. At least with some commercial competitiveness we are given the opportunity to budget on a more even playing field.

As for the price for one item that you quote, that is not a particularly useful standard for pricing research.

chassychassy [Member]
2008-07-25 @ 20:00

Hi menhir. Thanks for commenting, I don't manage to get here every day so apologies for the slight time delay.

I worked in a local corner shop, traditionally dearer than supermarkets, after all, they hardly have the same buying power - there is no myth in large business dictating prices to suppliers. We priced goods at the recommended retail price as stated on the invoice, and we would try our best to obtain any items our customers asked for. We also took in shopping lists and delivered to those who weren’t able to come to the shop, stopping for a chat even though we were busy, because it was obviously needed. It was a community minded shop where the local people could come and have a chat with friendly familiar faces, a particularly helpful and important daily ritual for many of the older folk. The elderly and infirm today are losing these links to the community as quickly as high street and corner shops are turning back into houses.

Perhaps without the ‘cache in the bank’ of investments conglomerates accrue and gamble with or the wider customer base urban living affords, higher pricing is necessary for an independent shop in a rural community in order for it to survive, as is limiting the range of grocery items available, this practiced even by the large supermarkets - tastes differ and most things come in multiples, and have a shelf-life, so only the more popular items are stocked. I can only assume those who choose to live in rural areas rather enjoy clean air, space, a more gentle pace of life, peace and stars at night over the convenience of cheaper goods from anywhere in the world at any time of the day or night, on any day of the week.

I’m not saying there aren’t those who over-price goods, tourist areas are particularly bad for this, but after having quashed the independent shop-owner, the behemoth that Tesco is should at least be able to charge the customer the same in their smaller stores as in their larger ones, instead of doing nothing for the community except taking from it whilst encouraging unnecessary spending and wastage and investing the profit in sitting on large swathes of land to keep competition out whilst pushing councils to agree to building plans – no myth either - I wonder how welcome the commercial competitiveness will be when even the playing fields have disappeared and sixteen years later the quiet rural village is nothing more than old houses in a new estate with bored kids hanging around with their mates on bikes by the chip shop, video shop, Tesco and farmhouse-style pub.

All main stores may sing from the same business sheet, but some leave out the more difficult notes.

I consider Co-Op to be ethical because of their regard for people and the planet, stocking items which support fair trade and ecological practices, supporting the health of the planet and all who inhabit it whilst trying to protect and alter the lives of those who live in appalling conditions with the poorest of diets earning a pittance whilst the West discards without conscience. They invest ethically, not pathologically.

As for the quote of the price of one item, that was not used particularly as a standard for pricing research – that particular standard was set by the comment attributed to Tesco suggesting their prices were standard across all their stores, I was merely stating my experience, for all I know it was wrongly priced, or perhaps it is the same price throughout all their stores, however my point is that when profit not people is the driving force, service and choice diminish and capitalism leads to monopoly. Business requires profit, but how much and at what cost?

menhirmenhir [Member]
2008-07-25 @ 21:24

Thank you for your detailed reply.

Your comments still present as urban centric. I don't know why you focus just on Tesco, a British owned store. Asda, Morrisons, Waitrose and Sainsbury's are not angels. We have had a major retailer move within reach of us, who in a short space of time has put a lot into the community without a major song and dance about it.

I disagree with the so called ethics that the Co-op literally trades on, which, with extremely close scrutiny, would unwind. There are peoples in so called fair trade areas who are being dictated to by fair trade umbrellas, and now the co-op is impressing the same approach on its customer base. That is not for me.

There has been no progress in dealing with the structural corruption that fair trade supports. There are farmers, who do not want to trade under 'Fair Trade' they are being pushed out as they want the choice not to be part of that particular syndicate. That is restrictive practice. I am not willing to support that. It may be the law of unintended consequences, but, there has been time to rectify it.

I am willing to pay the going rate for goods that are up to standard but in the very long time that Fair Trade has been existent, the standards for the majority of things that I want are still sub-standard. There has been time and allegedly input, for the quality and standards to improve, they have not.

Your supposition that people who live in rural areas choose to for space and stars is not acceptable. Some may want those aesthetics on a weekend or holiday basis,(not here, we are not on the edge of urbanisation) others are born to it and don't see why, (like dwellers of other styles of life) they should be forced out because they can't afford to live in the areas within which they have roots, because of poor work prospects, structural deprivation and high expense. There are no ethics in that.

The local shops we have had no meaningful competition, sold sub-standard stock for high prices and were not customer orientated. I include the Co-op in that game. Once competition arrived, the store cyncially found that it could suddenly compete; until then, we were charged through the nose. The other stores are having to raise their game too.

It wasn't the larger retailers that caused problems for our dubious store owners, it was a couple of charity shops that moved in very many years ago, long before the other retailers arrived, and the charity shops started to impinge on some of the 'new' sales. Next, people used less mail order and shopped using the internet. Even so, the traders still carried on their trading in the arrogant and excessively-priced way they had always done.

There are empty stores premises where people have retired from business through age. Some of the stores remain empty because their owners are too unrealistic about either the sales price they want, or what they want leasholders to take responsibility for. They have not moved with the times. They have to. Other premises have opened with niche sales, with what people want and raised the standards of a whole range of commercial interactions.

The smaller local grocery stores are still small local grocery stores, with their delivery services, customer meeting and social points. They do deliveries and neighbours help out too, where they can. Even our new larger store does deliveries, which for those with families is supportive and helpful. It also saves on the cost and use of fuel for the distance that would have to be covered.

The main concern for our outpost rural communities is the loss of the local post office or a reduction in the service of what remains. When the post office van breaks down, which it does with regularity, those pensioners who can, have to get a bus, one of a very few daily ones, some many miles to obtain their lifeline income. There is no back up for that sort of crisis except for neighbourly goodwill, if your neighbour is available and not too far away. This is where families are pivotal and this is the very structure that is being fractured.

We have something akin to a cottage hospital, the majority of the medical departments you would take for granted, do not exist here, for example, no peadiatric service, no orthopaedic service, no ear nose & throat, No cardiology, No haematology,no neurology. A journey of 120 miles (one way) to the regional hospital is required and even there, some specialist services are not available. There is limited geriatric expertise and as for rehabilitation - forget it. There are some hair-raising medical events that arise.

I have no angst with balanced arguments that encompass a global perspective; I have little sympathy for single issue politics; I am sympathetic to awareness-raising though I am not naive about how it is effected. The UK turns a blind eye to the deprivations in its own midst. I agree with your underlying point, that the UK should get its own house in order. We probably don't agree on precisely what that means or how it should be tackled.

chassychassy [Member]
2008-07-28 @ 12:29

I am not focusing on Tesco per se, although I did mention in my reply a practice regarding land carried out by Tesco that I know of no other company using - I am merely stating what is happening in my own area, their name happens to be above the doors, and that capitalism leads to monopolies and eventually a decline in service and choice, not an increase as is often promulgated. The others you speak of, although I’m not sure of Waitrose, have been found to be less than fair - price-fixing, for instance, rather substantiates my argument, however I will say Tesco, in this part of the country, is seriously ubiquitous and I cannot say that of any other store. You seem vehemently defensive about Tesco, perhaps you’re not seeing the full extent, I doubt they would put a store in a low-catchment area so stores are probably few and far between in rural areas, although I’d bet if there is only one major chain it would be a Tesco, and I’d imagine people would be grateful. I’m glad there is a major retailer who has put a lot into the community – who is it?

I am confused by your comment that farmers who do not want to trade under Fair Trade are being pushed out because they do not want to be part of that particular syndicate – isn’t it something they opt into? Wouldn’t they just continue as they were if they weren’t interested in Fair Trade?

You say the standards for the majority of things that you want are still substandard, surely that’s rather subjective - many people who buy Fair Trade products do so precisely because of their standards, their care and support for others and the planet, and appear to be happy with the quality too.

I don’t see how you say Co-Op is dictating to its customer base as they seem to stock the usual items as well as organic and Fair Trade – unless one argues all stores dictate by the items they stock.

Years ago I saw an article that indicated a concern regarding Fair Trade but I have not kept up to date with developments I must admit - which ethical supplier do you prefer to use?

Perhaps urbanisation brings with it the realisation that resources and space are finite, things cost, and the mountain does not come to Mohammed. Urbanites recognise the need to compromise, or move in order to have the particular lifestyle they want, and make their sacrifices accordingly. Roots do not give rights, certainly not the right to expect everything you want to be brought to you - times move on and we need to move with them if we want the benefits. To say you should be able to stay in remote rural areas whilst expecting all the benefits of urban life is to expect governments and councils to spend huge amounts of our taxes moving hell and high water to serve a relative few, or to ask shareholders to lose possible profit or the rest of the country to pay increased prices to cover losses, and presumably all this without the increased housing, roads and traffic problems.

Does it say something of the folk in your community that substandard stock at high prices continued – all in the same boat one would think you’d all look after one another, not take advantage, and couldn’t a small group of you have formed your own co-op, it sounds like the community would have benefited greatly. Saying that, there sounds to be more facilities in your area than I imagined, perhaps it’s a larger community than I first thought, but you’re right, with internet people do not need to tolerate excessively-priced items, however, competition is likely to loose you the postal service you have unless the Post Office is subsidised with our taxes in order to serve the rural communities – the cost of capitalism.

Stores here stand empty because after a year of remaining empty there is a good tax benefit for turning them back into houses, so we are loosing niche shops, as well as bakers, butchers and greengrocers - not that they will ever do well now because beside the numerous Tescos there are two large malls within a relatively easy distance with the usual mall chains. There is absolutely no point in starting up a small retail business - the cost and range could never compete, although tack-shops seem to be springing up in places, lets see if the supermarkets start stocking saddles and horse-blankets next :))

menhirmenhir [Member]
2008-07-28 @ 16:48

As I have already said to you, we probably don't agree on precisely what putting ones house in order means, or how it should be tackled.

Enjoy your saddles horse blankets!

chassychassy [Member]
2008-07-28 @ 20:44

:yes: :))

Cheers M.

The_WalrusThe_Walrus [Member]
http://www.doctor-dark.co.uk
2008-07-23 @ 16:43

Lurpak Light Spreadable? That's not butter...

The joke's a good one!

chassychassy [Member]
2008-07-25 @ 20:18

:)) :)) well you're 53% right there Walrus :))

Glad you liked the joke - I know how it feels (not the balls bit, I don't have them :)) )

cishanjiacishanjia [Member]
2008-07-23 @ 18:15

Here's a radical idea:

1. Radical and progressive people get together to form a Special Credit Union.
2. The Special Credit Union clubs together to build up to becoming majority shareholders in companies like Tesco.
3. They then destroy companies like Tesco.

Of course the downside is that they lose their investment too. Unless they can more than match their investment with the money they lend to Tesco - since debtors get paid off before shareholders. But that probably wouldn't work either.

Sadly.

Any radical accountants out there! :)

chassychassy [Member]
2008-07-25 @ 20:49

Hiya cis! Nice to see you about!

I think this is how business works these days isn't it? :-/ I sometimes wonder how many people actually own the names we're familiar with. I think it's only a few at the top, all companies seem to be part of a larger company, so I assume there's a top of the tree somewhere.

It's getting more and more like the futures depicted in sci-fi action movies with spies in the skys, a single person running everything with a few familiars living in gross luxury whilst the rest suffer and are beaten down if they try to change anything - but that sounds like history too :-/ :))

Keep working for the right side, critical mass may be reached one day :yes:

XX.

kevinwilsonkevinwilson pro
2008-07-23 @ 18:38

i'm pinning my hopes on the co-op.
we have one nearby, and even though they have bought out somerfield, i hope they stick to their principles and we end up with a retail chain that can compete with the likes of tesco without selling their souls.

x

chassychassy [Member]
2008-07-25 @ 20:14

Hear hear Kevin! I so hope so too. I use their credit card as I don't mind paying interest to Co-Op cos every little bit helps oops :oops: wrong ad :)) and 1% goes to Oxfam ;)

X back at ya!

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