Question 6Food companies do a lot of hard negotiating to have their products placed at the most appealing height and location in a grocery store. Placing products at eyelevel is considered most desirable and companies will pay large stocking fees in order to win that spot of the shelf.
Products placed at eyelevel or more likely to be purchased because if we can see something straight on the temptation to reach for it is more likely to takeover. Smart product placement is not just to tempt adults. Bend down and look at the products placed at your child's eyelevel..."Look mommy! Chocolate cookies!"
Question 7It is a misconception that impulse items placed near the checkout counters are purposely marked up to maximize profit. Generally, these items are going to cost the same no matter where you shop.
The management at supermarkets know that people standing, waiting to be checked out are going to doodle with stuff close at hand. Generally the items located here are going to be impulse items, such as lighters, candy, batteries, tape, things you remember needing because you see it. Most of the items in the checkout area are inexpensive, so buying them is easily justified. However, what many shoppers are not aware of is that this area of the store sells almost three times as much per square foot as any other area. The products in this section have huge markups, so unless you are desperate, wait until your next trip to a discount or dollar store to buy this kind of merchandise.
Question 8Scanners often display the incorrect price for items that are on sale.
Scanners are only as perfect as the person who inputs the information into them. Mistakes often happen when items are scanned and it seems to happen on the sale items. A last minute decision to promote and item or the failure to pull sale signs from discontinued promotions are the main reasons for the discrepancies at the check out counter. Shoppers must pay close attention to the price displayed on the register to insure that there are no mistakes on the bill.
Question 9The amount of the discounts on food coupons has dropped over the years.
According to Santella & Associates, a marketing company out of Chicago, in 2002, 71 percent of the consumers polled said coupons saved them a lot of money compared to 50.9 percent in 2001. Yet redemption rates were down 5.4 percent for the same period. What would cause this downtrend? Food companies are tightening the face value of coupons. The expiration period has a much smaller window then it once had and the redemption amounts are shrinking. Often the coupons available now are for new expensive products that food companies want us to try.
Question 10Food manufacturers often decrease the size of products rather than raise the price.
The trend in cutting back the amount of food in a package versus raising the price has become commonplace. Manufacturers generally leave everything the same - packaging, product placement, price - but just change the information regarding weight. A keen eye will catch it but most often, if the change is discreet enough, most consumers won't even notice the difference.