Shameless marketing

The CEO of Nosh has hit on a good marketing plan. Obviously business has been a bit slow for over-priced fruit, veges and poncy gay food so he hit on a plan to lose money by selling milk at a loss.

In the grocery trade this is called loss leading…and the trick is to make it up on other stuff. Given the over-priced nature of food and provisions at Nosh it is highly likely he is making a killing on the other stuff.

But the thing that got me wondering was this statement:

 

Why on earth is a jumped up school teacher getting involved in the price of milk?

if he means ‘prinicple’ then just what is that principle that he sees as so important? Free marketing for Nosh in a major daily? Losing money on a product line? Seems to me that his principle or principal is imaginary….selling items at a loss is only guaranteed to make you go broke.

Surely he should now sell his fresh fruit and vegetables at a loss because of his principles….then he can sit down with his suppliers and explain to them that he can’t pay their bills this month because he sold everything at a loss as a matter of principle.

 


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  • James Gray

    A friend of Mr. Ure’s perhaps?

  • poncy gay food – (?) I didn’t know such a selection existed – what foods have I got to avoid now so I don’t get labelled? On a slightly more serious note – The only difference between Nosh selling milk below cost and major supermarkets is they have the economy of scale to absorb loss leaders, by the profits they make on other overpriced items. Besides Nosh got not only free publicity from the print media, TV also picked up the story during  their infomercials, sorry news hour. Worth thousands I would have thought – well done.

    • Steve (North Shore)

      Quiche Neil, avoid quiche. Real blokes don’t eat quiche, they eat topless egg pies

      • Pharmachick

        But Steve, haven’t you heard … “real men eat quiche”.

        ha ha ha ha 

        Priceless!

  • Ricardo

    His loss of ‘well in excess of 50c per bottle sounds odd’. Does this mean he buys a 2 litre bottle for,say, $2.70??   Even if he sold at cost then, he is still WELL under the Supermarket price. Something very odd here.

  • Anonymous

    Good god, that’s worse than that Gull outfit trying to sell cheap petrol. Who do these people think they are trying to take on the super-corporates in this country?

    • James Gray

      Meh. This is merely sloppy journalism from a pinko rag pretending to be a real newspaper

  • ruf

    not a bad ploy, lost leaders are often employed to get people interested in a store, getting them through the door for the upsell. In this case he only has to pull his lost leader in a few months and it would still have been worth all the free advertising he has gained by looking like a peoples warrior in the ‘price of milk’ battle.

    • Rockfield

      The last known ‘Lost Leader’ in Noo Zeeland was Phil Goff !!! fot Gawds Sake …..

      WO got it right originally, ‘Loss Leader’ !!!

      R.

      • ruf

        sorry i mean LOSS LEADER

  • Johno1234

    This is nothing new. Supermarkets loss lead stuff like wine all the time to get the punters in the door.

    Why call it shameless marketing? What’s to be ashamed about for marketing?

    • Because he is pretending he gives a shit how much milk costs. I can’t wait…in 2 months time I’ll trot along to nosh and catch him out with higher milk prices, when he thinks every one forgot about his little crusade.

      • Johno1234

        Who cares? It is cheap milk and now others are doing it.

        He’s already said he’ll only “keep prices at $1 a litre at least until the end of the month”

  • Paulus

    See Supermarket (P&S) across the road has reduced their price to match this.
    Anyway its only for a month so who cares. Loss leaders are nothing new, it happens all the time.

  • Vlad

    WO don’t knock Nosh’s poncy food until you have tried their sausages.  Pretty good. 

  • Anonymous

    Is this more or less shameless than Fonterra’s free milk in Northland schools?

  • Anonymous

    At school we were taught ‘My Pal the Princi-pal’ which we remembered because the thought was ridiculous.

  • STEVE AND MONIQUE

    PaknSave Mill st Hamilton has matched Nosh price.Since they are neighbours,it makes sense in the face of competition to do so.Makes you wonder about profit for said product,and the mark up used.

  • Bunswalla

    He’s using a recognised strategy to sell more groceries using a loss-leader and the public’s desire to see the little guy put one over the big boys. Good on him I say, but for sure their poncy gay food isn’t to everyone’s taste. I don’t see what’s wrong with hammering the Fonterra’s and the cosy supermarket duopoly about their price-gouging either.

  • A-random-reader

    Whale said:

    “Obviously business has been a bit slow for over-priced fruit, veges and poncy gay food”

    ——————-

    Still living on struggle street are we?

    • Nope, I just don’t like artichokes or any other fancy muck at inflated prices. Some people do though and are quite prepared to be fleeced for alleged exclusivity.

  • Hollyfield

    Thanks to yesterday’s publicity, Nosh has a new customer in me. Friends had been telling me for months that Nosh has many things cheaper than supermarkets, but I hadn’t believed them.  Last week my local Pak n Save had avocados for $1.30.  On Monday both a local fruit & vege shop and Countdown had avocados 2 for $2.  Yesterday when I went to get my cheap milk Nosh had avocados 4 for $2.  Which store shall we say is overpriced?

  • Don

    According to the article, the churlinists that never learnt english are named as Michael Dickison and Elizabeth Binning  

  • Clinton

    Hi Whale Oil
    Good grunty discussion. I am happy to help with some fact finding in regard to Nosh pricing on fruit and veges versus supermarkets…if your keen to catch up. ill take you around the shop…  lets check Nosh prices versus say the Countdown over the road…lets see if we are overpriced or  not!

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