The findings were striking. Civis was staggered not only by the size of the markup but also by the convoluted pricing structure.
Adding to the dismay were lower North Island prices, despite the product being manufactured in Hokitika.
Civis had assumed supermarket margins would be relatively modest, even on premium items. Not so, it seems.
The item in question is EasiYo Fresh Greek Style Yoghurt, Low Fat Unsweetened Base 170g — one of several EasiYo products that customers mix and make at home.
As a premium, relatively low-turnover product, a somewhat higher markup might be expected.
However, the yoghurt base is a dry good with a long shelf life, requires no refrigeration, and is not especially bulky.
These were last week’s prices:
• New World South Island $6.49;
• Woolworths (special) $4.50, usual shelf $5.49;
• Pak’nSave Dunedin $5.99;
• New World North Island $5.79;
• Pak’nSave New Plymouth (chosen at random) $5.49.
The array of numbers may be a little overwhelming — not helped by prices ending in 49c or 99c — but they repay a careful look.
Make of them what you will; prices for other products may vary just as widely. New World might be cheaper than Woolworths in some cases.
Buying directly from Hokitika last week, Civis found the price was $4.50 per item, with $5 freight on small orders and free shipping once the quantity reached the teens.
Suppose New World South Island bought in bulk at $4 (GST inclusive) and sold at $6.49 (also GST inclusive). That represents about a 62% markup.
Purchasing at the public $4.50 price would yield a markup of about 44%.
New World appeared to remain competitive on high-turnover staples where shoppers are more price-aware.
For example, last week 750g of Weet-Bix was $6.49 at New World South Island and $6.39 at Woolworths.
Civis prefers to support New Zealand-owned businesses, so hopes this example is an exception and that New World prices are lower on other products. Woolworths is Australian-owned.
At least those living in larger centres have a choice of supermarkets.
The New World media contact received these figures and accompanying comments on Friday morning last week, with a request for a response by the end of Tuesday.
A reminder on Wednesday morning brought no substantive reply before Civis’ deadline that evening.
Any response received later this week could be reported next Saturday.
* * *
The plot, or should we say the yoghurt, thickened when prices were rechecked this week.
The local New World price dropped to $5.99, down 50c. Woolworths’ standard price also fell 50c, to $4.99 — a slightly larger percentage drop because of the lower starting point. Meanwhile, Lower Hutt New World had the product at $5.79.
Pak’nSave Dunedin featured it on an "extra low" special at $4.49. Timaru’s shelf price was $5.29, and Pak’nSave New Plymouth’s "extra low" promotion was $4.39.
And the Hokitika factory? The yoghurt still sells there for $4.50.
