More proof businesses are gouging Ashburn

It is a matter of perspective.
You are being really harsh by calling it gouging. We live in an economic system based on capitalism. The basic economics of running a company is to charge "what the market will bear". Did you consider that the item may only be offered at a break even or even at a loss at the Herndon store, while it makes a little money here? Or that the Herndon store may not do very much business, and they lowered the price there to try to develop that part of their business? It could also be that they are considering raising (or lowering) the price across the Safeway Chain, and they are testing consumer response to a change in pricing. Perhaps you would have been happier purchasing the item at the higher price at both stores.

Zone pricing is a standard and occurs across the country. Everything you purchase is being sold in other areas at different prices. The cost of gasoline is different in every community, and that is a total commodity. Pricing varying by store even occurs in "Membership Stores".

Finally, I have taught golf at both private clubs and public golf courses. When at the private clubs, my price was as much as double as my price at the public courses. Why? Because the public course golfers cannot afford the prices that I charged to members at elite private country clubs.

 

It is a matter of perspective.
You are being really harsh by calling it gouging. We live in an economic system based on capitalism. The basic economics of running a company is to charge "what the market will bear". Did you consider that the item may only be offered at a break even or even at a loss at the Herndon store, while it makes a little money here? Or that the Herndon store may not do very much business, and they lowered the price there to try to develop that part of their business? It could also be that they are considering raising (or lowering) the price across the Safeway Chain, and they are testing consumer response to a change in pricing. Perhaps you would have been happier purchasing the item at the higher price at both stores.

Zone pricing is a standard and occurs across the country. Everything you purchase is being sold in other areas at different prices. The cost of gasoline is different in every community, and that is a total commodity. Pricing varying by store even occurs in "Membership Stores".

Finally, I have taught golf at both private clubs and public golf courses. When at the private clubs, my price was as much as double as my price at the public courses. Why? Because the public course golfers cannot afford the prices that I charged to members at elite private country clubs.

 

Quote:
Originally Posted by gryphon
Having free-market competition means that Safeway is free to set its own prices. Outrage of "profiteering" and your line of logic are the same devices used by the people who want the government to control gas prices. I've never seen ANYTHING work better with the government's hand in it. I say let Safeway charge what it wants.

The free market system is not politics, it is economics. Our policital system is a "representative democracy". Our economic system is "socialistic capitalism". They are separate issues, and I don't think that gryph was being political in the least.

 

Furthermore, should a store with a bad location (way off the beaten path) be forced to charge as much as one with a great location (right off of an interstate).

Seriously, Steve, did you even consider that in Ashburn Safeway is charging the standard price, and Reston has to lower their prices to attract business???

 

Um, what are you suggesting? Picketing the stores here in Ashburn? Calling Jesse Jackson and Al Sharpton in to protest the injustice?

We each act with our wallets and choices. It's called the free market system and it works pretty well.

 

I work with several large national retailers and some use "zone base" pricing. This means, dependant on your zip code your prices for the same item change. Sign up for an email from some of them, with different zip codes, and you will receive the exact same marketing email with two different prices. So, it's not only practiced in local stores, but email and online shopping as well.

 

Nicely said, pga_mike. This type of market economy encourages price-sensitive shoppers like flynnibus to bargain hunt, while other who don't mind paying the premium purchase locally. No harm, no foul, and no big deal.

 

I do notice certain price differences her. For example the Irish butter we buy at Safeway is always $2.99 and yet the same butter is always priced $4.99 at any Harris Teeter. Giant sells a greek yogurt I like for $.10 less than Teeter, but Safeway doesn't even carry it.

In this area we have always gone to several stores to get the better prices on certain things we buy - like the butter.

The only beef we have with Safeway is that very often things we normaly buy suddenly aren't sold anymore...and these are not unusual items, either.

And GAS? well Costco sells it $.03 cheaper than safeways $.10 off for every $50 in purchases. Go down to Fredericksburg and it is $2.59. In fact anywher along RT 17 it is cheaper than this area, but we overall we still have cheaper gas than my sis does living in Orange county, CA

 

I would look at what you pay at Giant or Safeway or Harris Teeter, then look at what you pay at Trader Joe's. Sure you can't find 'Green Giant' Frozen Green Beans, but you can buy a bag of TJ's Green Beans imported from France, at a lot cheaper price.

You may not be able to find Dannon Yogurt, but TJ's is just as good, and a few cents cheaper.

Sure you have to head to Reston ... but that's a 20 minute drive during the middle of the day, or on weekends. It takes longer than that to get to Tyson's, but no one complains about how long it takes to get to the Galleria, and I suspect you spend more on food each year, then on stuff bought at the boutiques.

Disclaimer ... I work for TJ's, and love the food and the prices.

 

Any chance of them coming to Ashburn in my lifetime? I go at least once a month to Reston TJ's and ALWAYS bug them about getting out here. Do you have any inside scoop?

 

Neilz --

Thanks. These are great suggestions for anyone who is price sensitive. If you want to save money, you have to bargain hunt. If not, be prepared to pay a premium. Who would buy a car without checking out prices? Why not the same for a few grocery items? Over a lifetime, you could easily save enough to buy at least a small bimmer.

 

You entitled this thread "more proof businesses are gouging Ashburn". As a retailer (that is what a golf pro does), I find your use of the term inflammatory, to say the least. Your "proof" is the selection of a single item that was on special at two different stores from the same chain. Hardly enough to call it proof. (Now I am splitting hairs, btw). I might call that kinda circumstantial evidence.

If you want to know what gouging is, go to a small town (like the one that I work in) with one grocery store and one hardware store, two gas stations (side by side) one video store, one automotive repair shop, one welder, one sit-down restaurant....you get the difference. In Asburn, there are plenty of options. If you don't like Safeway's pricing, go to Bloom. If you don't like Bloom, go to ... heck I dont care.

Trust me, the groceries are a dog eat dog business! They arent all going to follow in suit. One chain would like nothing better than to knock out the others.

Bottom line, there is no gouging where there is competition!

 

TJ does not stock 'generics', all the items under the TJ's name are top quality, made to our specifications, and taste tested by our own tasting panel. If they don't like it, it doesn't get on the shelf.

Most 'generics' are grade B product, TJ would not allow that. We can save the customer money because we deal directly with the manufacturer, not through a third-party jobber or warehouse. This also means that if the manufacturer cannot keep up with our demand, or they are scheduled to manufacture a different product that week, we may not have a certain product on the shelf one week.

As far as the Galleria, it was just an example of what some do on a normal shopping day.

Disclaimer - I am currently a Trader Joe's employee and love the food & prices.

 

They have to see that the area can support anohter TJ's. FWIW .. they've opened the 4th TJ in the greater Atlanta area, the 4th in a year. What they've seen is that the existing stores can reach a certain weekly sales figure, and continue or exceed that figure on a regular basis.

I'd keep on bugging TJ's, let them know in Reston, and have your neighbors do so also. FWIW ... many people do not know about TJ's and their food, next time you go, take a neighbor who hasn't been there. In our store, we have a comparison between us and our Noble Competitor Giant-Eagle (no relation to your Giant Foods). On a normal day-to-day shopping list (eggs, bread, mile, TP, cereal, etc) we consistantly show savings of $20 or more. And our cost-of-living here is much lower than Ashburn.