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PricedOut Discussion
Subject: Why has Waitrose changed its money into Stwaberry Jam?
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lazen


Activist
Activist
Posts:326


16/07/2008 4:30 AM Alert 
The other day I stood in the brand spanking newly erected  cavernous Waitrose
in a suburb.
As I stared around at the 10,000s little products on display and the near empty
car park(people are finding it more and more costly to visit by car),the deserted goods yard(fewer deliveries as diesel rises)I suddenly had a eureka moment.
Why oh why I asked do they bovver?!
I mean Waitrose has taken perfectly good money £ s d and turned it into Strawberry Jam,rotting bananas,reduced prawns and 10,000 other bets
that may or may not "sell."
IF they sell then it gets changed back again into good £s s d.
Then I pondered WHY DOESNT WAITROSE JUST KEEP THE MONEY IN THE BANK INSTEAD AND GET INTEREST OR DIVIDENDS AND NOT BUY ANY JAM?
Because they are a supermarket you say-if they all did that there wouldnt be anymore supermarkets.Precisely!
So eco anaylists perhaps you can help here?
At what point does it become more economical NOT to buy any jam but put the money into the bank instead?
Heres the sum
Cost of jam:
Diesel,purchase,store heat light,staff salaries times:
cost of pot of jam to Waitrose hypothetical 99p
On sale at £2.
Half dont sell.
Profit per pot 50p
99p put in fast rising shares,Waitrose shares or bank pays 10%interest p.a=10p
But if rates go to 20% then 20p
Plus cost of NOT buying or selling any jam 99p saved.
So total profit £1.20p on 99p!!!!!!!!!!!!.


Asteve


Activist
Activist
Posts:930


16/07/2008 9:31 AM Alert 
If a business does not expect to earn more than the "risk free rate", then honest directors would liquidate the company and return funds to shareholders.

Bond yields (analogous to interest rates) are set by the market such that bonds pay slightly less (on average) than direct investment.

The rate of interest paid on deposits, thus, can be thought of as the minimum return from a viable business. While there always have and will be scams analogous to Ponzi schemes, these simply exchange perceived value for risk - you may as well visit a casino and bet on roulette.

plainservice


Concerned Citizen
Concerned Citizen
Posts:93


20/07/2008 5:42 PM Alert 
So when lazen writes:
Then I pondered WHY DOESNT WAITROSE JUST KEEP THE MONEY IN THE
BANK INSTEAD AND GET INTEREST OR DIVIDENDS AND NOT BUY ANY JAM?


I have wondered sometimes why British companies fail whilst American companies suceed. Anyone remember our own British ICL? I think there were lots more, but I forget their names, but they all lost out to american competitors e.g. IBM, Sun, HP, Compaq, Dell etc...  Just look at every key industry!

Frankly it is down to "lets do nothing"..... most good companies keep moving even in tough times!





Asteve


Activist
Activist
Posts:930


20/07/2008 6:57 PM Alert 
Have you considered that American takeovers might have been prominent because US$ denominated corporations has better access to credit facilities?
lazen


Activist
Activist
Posts:326


21/07/2008 4:23 AM Alert 

Because places like USA France have a sincere community ethic.Their employees are not out to screw the public or rip them off by and large like in The UK.In The UK its all how much can we get away with on prices?There its how nice is the food item offered and how cheap can we offer it to children.
The UK persists in offering food with additives like Aspartame,Colourings etc
that have been banned in Japan and 28 other countries since the early 1970s because they were considered harmful to public consumer health.
The very worst thing a store can do is sell food that even has a teeny weeny
bit of doubt over it.
It shows total disregard for the customer.
OK not all worldwdie supermarket food is great.
This lets screw the public ethic has spilled over into Rail,Housing,Gas and Petrol.
It works by getting the consumer into a position over a barrel
then mercillesly laying on the lash.
The aim is to exploit,take advantage,screw for profit
and be able to say well we are the only game in town if you dont like it
starve.
Luckily the public are not so stupid.
Farmers markets provide good cheap food and are closing supermarkets
in amany parts of town on Saturdays.
The exploitation attempt has back fired leaving greedy companys with tons
of unsaleabale stock mistakes.
Their retial shares are diving to oblivion.
Karma man Karma

 

lazen


Activist
Activist
Posts:326


21/07/2008 4:23 AM Alert 

Because places like USA France have a sincere community ethic.Their employees are not out to screw the public or rip them off by and large like in The UK.In The UK its all how much can we get away with on prices?There its how nice is the food item offered and how cheap can we offer it to children.
The UK persists in offering food with additives like Aspartame,Colourings etc
that have been banned in Japan and 28 other countries since the early 1970s because they were considered harmful to public consumer health.
The very worst thing a store can do is sell food that even has a teeny weeny
bit of doubt over it.
It shows total disregard for the customer.
OK not all worldwdie supermarket food is great.
This lets screw the public ethic has spilled over into Rail,Housing,Gas and Petrol.
It works by getting the consumer into a position over a barrel
then mercillesly laying on the lash.
The aim is to exploit,take advantage,screw for profit
and be able to say well we are the only game in town if you dont like it
starve.
Luckily the public are not so stupid.
Farmers markets provide good cheap food and are closing supermarkets
in amany parts of town on Saturdays.
The exploitation attempt has back fired leaving greedy companys with tons
of unsaleabale stock mistakes.
Their retial shares are diving to oblivion.
Karma man Karma

 

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