Nosh complaining about arbitrage they created

Oh this is hilarious. Nosh are complaining because smart dairy owners are buying their below cost milk and then on-selling to at a profit…kind of like Trevor Mallard did with his tickets:

But not everyone who is buying the milk is drinking it.

“It’s an unfortunate incident that happens on a regular basis as far as trade coming in and purchasing the milk to on-sell,” says Mr Cibulskis.

3 News found one such example a few hundred metres up the road from Nosh.

Owners at a small store confirmed sending their children to Nosh to buy milk on numerous occasions.

The owner of the dairy did not want to appear on camera but says she bought the milk from Nosh because it was cheap and she could make a profit.

…But Jubeda Patel who owns a superette in Auckland’s CBD says milk pricing is the cause of this war between Nosh and the dairy up the road.

And she says Nosh is being a bit precious.

“I don’t think she’s doing anything wrong. She’s running a business which is hard for everyone. She’s paying the price that Nosh is asking. And Nosh may be closing earlier hours and she may be able to offer it at a different hour to them,” says Ms Patel.

Nosh has now told the owners of the dairy not to come back.

Nosh created the arbitrage, now they are upset about it. It shows basic economic illiteracy that they should be upset at people taking advantage of it.

 


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  • Russell

    Why any surpise.

    Quite often small shops will purchase items at a supermarket when they sell below the cost price to say a dairy that may not be allowed to participate in a special promotion or don’t have the buying power.

    I wild be surprised if the bleaters have not done that themselves.

    • ConwayCaptain

      Russell

      When I lved on the N Shore I was in Pak n Save on the Wairau Road on a Tuesday moring at about 0800 and it was BUSY.  Mentioned this to the check out girl and she said Every Tuesady at this time all the Dairy Owners come in and stock up!!

  • Hakim of phut

    I thought you said Nosh only sold the milk when you bought $25 worth of their high priced items ?

    http://www.whaleoil.co.nz/tag/dairy-products/ 

    Is the ‘army’ giving you misleading information ?

    • Guestosterone

      that was one branch of Nosh

      keep up phutface

      • Chester

        youve got it wrong no Nosh store had a $25 amount,,,look at the whaleoil advertising sponsors…Countdown!

  • It didn’t actually sound like a complaint – they knew it was going to happen and even said it…”an unfortunate incident that happens on a regular basis….” Most grocery chains also have this happen to them – in fact when I was workin’ in the industry for a time I was told and occasionally given a photo of which folk to look out for at Woolworths.

  • Guestosterone

    so what they are basically saying is that it was a publicity stunt to create more real customers

    they actually don’t give a fat rats about milk prices

    cry me a river

  • Grizz30

    Don’t supermarkets set “trade limits” so that other shop owners do not take full advantage of loss leading items. For instance when soft drinks are specialed, there is often a limit of say 12 that a customer can purchase. However nothing stops people and associates coming back multiple times.

  • John Q Public

    If I had a dollar for every bloke in a turban I’ve seen at Countdown with four dozen of discounted premium lager, and nothing else in the trolley, I’d have enough to buy a few dozen myself.

  • Liberty

    That is why you don’t find the so called kiwi running the corner dairy.
    They have no idea how to trade and make money out of nothing.
      

  • bb

    this is a good example of an open and free market. in the end the consumer will ultimately make the choice. fyi – don’t go to nosh – stupidly over priced snooty food anyways. good for the silver-foxes in ponsnobby too busy keeping up with the jonses.

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