M&S have selected bags of 150G crisps on a buy one get one free offer, works out only 80p per bag. IIRC the flavours were:
Sea Salt
Sea Salt & Balsamic Vinegar
Maple Bacon
Sour Cream & Onion
Mature Cheddar & Onion
Prawn Cocktail
Sea Salt & Black Pepper
16 comments
pinnocchio
11 Sep 17#9
I'm sorry but how can people get excited over paying 80p for A BAG OF CRISPS?
It's about 1 potato that cost about 2p to buy, add 1p of 'flavouring', 1p to peel and fry it, 2p for the bag, 3p for distribution and say 15p for store profit, that adds up to 24p.
The ridiculous mark up on 'crisp' pricing at normally over £1 per pack is absurd and a good example of effective collusion between the large retailers.
They could all sell these at 50p a bag and still make a good profit.
pawleil to pinnocchio
11 Sep 17#10
weswart to pinnocchio
11 Sep 17#11
Not a bad price for premium crisps. Have to taste to see if they are premium.
jw191 to pinnocchio
11 Sep 17#12
Overall profitability in 2017; revenue £10.6bn, profit £176.4m (1.7%). There are a lot more costs than you are accounting for.
The crisps are better than average and equivalent to Kettle Chips IMO. Consumers can vote with their wallets whether they're worth the asking price. These are 150g bags.
pinnocchio to jw191
11 Sep 17#13
Oh please.
The 'profit' of £176.4m is after they've stripped out exceptionals of a further £437.4m.
Also I'm talking about the core costs of this product, not using the profits from crisps to underwrite the rest of the groups inefficiencies or cr*p management decisions (bad decisions on clothes stocked, closing stores in wrong locations, etc....).
My point stands, 50p per bag would provide ample profit for this product (in fairness I did forget VAT so that would be 8p of the 50p selling price).
.
.
jw191 to pinnocchio
11 Sep 17#14
Inefficiency in large businesses is pretty normal and capex / opex has to be spread accross the product base when assessing value.
568 degrees so most people think this is good value. If you can produce a premium crisp, market and sell it at 50p for for 150g, go for it; you'll be rich. :thumbsup:
pinnocchio to jw191
12 Sep 17#15
There's inefficiencies, then there's gouging.
The 'retail' price for most of these 'premium' crisp products are around the £1.50 mark.
Are you honestly trying to tell me that 32p worth of product (and that includes all of 15p profit and 8p VAT, shipping, packaging etc...) can justify a 'retail' price of £1.50 (and yes I do realise that the elasticity of supply and demand effects the price....so if they can sell it for £1.50 they will), but it doesn't mean someone couldn't produce a quality product that would sell for 50p.
The reality is though that the major retailers wouldn't carry it as they'd rather run continual 'fake' reductions to drive demand.
Anyway selling crisps doesn't have the economies of scale to get rich without a lot of capex (and I'd be interested to know what you define as rich), when selling other things is far more profitable and less capital intensive.
jw191 to pinnocchio
12 Sep 17#16
They must be selling other stuff at a massive loss then or making up their annual accounts. I'm going to move on because this debate is going nowhere useful. Thanks OP for the post.
puddles9999
10 Sep 17#8
Usually pay 65p each but still hot
brychris
10 Sep 17#7
As it's M&S crisps, I was expecting more extravagant flavours than the one's mentioned :thinking:
veedubjai
10 Sep 17#6
coerce86
10 Sep 17#5
did someone say bacon?
crumpo
10 Sep 17#3
Just buying some now! 80p per pack! Yum yum
veedubjai
10 Sep 17#1
Sea Salt :poop: Sea Salt & Balsamic Vinegar :poop: Maple Bacon ✓ :thumbsup: Sour Cream & Onion :poop: Mature Cheddar & Onion :poop: Prawn Cocktail ✓ :thumbsup: Sea Salt & Black Pepper :poop:
Jetset1981 to veedubjai
10 Sep 17#2
Sour Cream and Onion :poop: Prawn Cocktail :poop: Sea Salt and Balsamic Vinegar :thumbsup: Sea Salt and Black Pepper :thumbsup:
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Opening post
16 comments
It's about 1 potato that cost about 2p to buy, add 1p of 'flavouring', 1p to peel and fry it, 2p for the bag, 3p for distribution and say 15p for store profit, that adds up to 24p.
The ridiculous mark up on 'crisp' pricing at normally over £1 per pack is absurd and a good example of effective collusion between the large retailers.
They could all sell these at 50p a bag and still make a good profit.
The crisps are better than average and equivalent to Kettle Chips IMO. Consumers can vote with their wallets whether they're worth the asking price. These are 150g bags.
The 'profit' of £176.4m is after they've stripped out exceptionals of a further £437.4m.
Also I'm talking about the core costs of this product, not using the profits from crisps to underwrite the rest of the groups inefficiencies or cr*p management decisions (bad decisions on clothes stocked, closing stores in wrong locations, etc....).
My point stands, 50p per bag would provide ample profit for this product (in fairness I did forget VAT so that would be 8p of the 50p selling price).
.
.
568 degrees so most people think this is good value. If you can produce a premium crisp, market and sell it at 50p for for 150g, go for it; you'll be rich. :thumbsup:
The 'retail' price for most of these 'premium' crisp products are around the £1.50 mark.
Are you honestly trying to tell me that 32p worth of product (and that includes all of 15p profit and 8p VAT, shipping, packaging etc...) can justify a 'retail' price of £1.50 (and yes I do realise that the elasticity of supply and demand effects the price....so if they can sell it for £1.50 they will), but it doesn't mean someone couldn't produce a quality product that would sell for 50p.
The reality is though that the major retailers wouldn't carry it as they'd rather run continual 'fake' reductions to drive demand.
Anyway selling crisps doesn't have the economies of scale to get rich without a lot of capex (and I'd be interested to know what you define as rich), when selling other things is far more profitable and less capital intensive.