No my friend what you are referring to is just one form of economics that being greedy capitalism.

What you are taking about is profit not cost, With the exception of a few core lines most Supermarkets can easily absorb a 10% increase and still make a huge profit. However they are greedy and so are most of there already wealthy shareholder who simply won't accept a drop in profits or dividends.

So let's be straight about this Tesco or whoever will never lose money even with a 10% hike in costs they will just make less profit. They are not willing to do this so they will pass that cost on to maintain profits to those who can generally afford it least - the customer.

That is basic economics in a market driven economy so spare us the platitudes please - we may be stupid but were not that stupid.

Well said Wollo.
Brought up in similar situation.Used to have bath Friday in front of black lead fireplace watching Wagon Train.
Shared wash house and toilet at far end of terrace.
Stop there before it gets like the Monty Python sketch.

Very well said Vastman! Add Redrow homes into that scenario - just announced great profits but most of Joe Public can't afford their ridiculous house prices!

Have any of you ever seen the wafer thin profit margins supermarkets operate on? That is why price wars don't last for long, it is unsustainable. Supermarkets are one of the lowest net margin businesses listed on the LSE.

I wouldn't bother mate.

The only thing that matches the scale of many leavers ignorance, is their arrogance.

"Because we used to live in a dump back in the 'good ol' days' then what's the problem.

Absolute garbage Sainsbury's made a £587m profit in 2016 how the hell is that wafer thin!

I happen to know that a certain Supermarket buys Scotch eggs in for their value range at 23p a unit. That includes the supplier paying for the storage, transport and packaging costs (including the design) and sells them for 99p - that is virtually a 300% mark up way beyond what any small producer can demand.

Anther point, they may have lower net margins but they also have almost instant cashflow which is a powerful tool. Supermarkets order by the millions but they don't pay for it all and once and even the final call off takes 30 days to process. The customer doesn't get 30 days to pay for his groceries does he!

It's the suppliers and customers on wafer thin margins not the supermarkets but if you want to peddle that line feel free.

That's your best shot, I really wouldn't have bothered if I were you as you've clearly swallowed the company manual.

I was talking about net margin. Look at revenue to net profit.

People who follow the stock market and listed companies know that supermarkets operate on tight margins.

I'm not going to bother. You clearly knows better than all of our management team and the two leading economists that we had present.

A word for you though, in my experience, gobe, know it all's like your good self, know very little in reality.

I assume you are being ironic with your first sentence?

Really, so you know what I do and how I know what I know do you mmm who's the gobe here I wonder.

Please don't make me laugh as to the reliability of what economists and Supermarket management say I'm not sure my ribs can take it.

What was it the late Ken Morrison said about a Morrisons CEO and cow poo! and that's from a man who new a margi when he saw one.

From the horses mouth www.j-sainsbury.co.uk/media/3165 ... cement.pdf Sales £23,506m Profit before tax £587m If my calculator does not decieve me I make that a net margin of 2.33%. So how are supermarkets able to absorb price rises and not pass them onto the customer without making a loss?

From the horses mouth www.j-sainsbury.co.uk/media/3165 ... cement.pdf Sales £23,506m Profit before tax £587m If my calculator does not decieve me I make that a net margin of 2.33%. So how are supermarkets able to absorb price rises and not pass them onto the customer without making a loss?

Interesting stuff.
My dad's bigger than your dad and I bet I used the bathwater after you Beagle!
Not sure how this relates to Trinity "Wildcats" though.
28-26 Up the Trinity.

p.s. wouldn't pea on Corbyn or his mates if they were on fire. Useless gits.

How dare you question a lefty Vastman, you should have learned by now they are always right, don't waste your energy mate they are not worth it.

Fixed that for you

Thought better of you Ben.

Quote ="wildshot"From the horses mouth www.j-sainsbury.co.uk/media/3165 ... cement.pdf Sales £23,506m Profit before tax £587m If my calculator does not decieve me I make that a net margin of 2.33%. So how are supermarkets able to absorb price rises and not pass them onto the customer without making a loss?'" 2.49% on my calculator and Actually after tax the "net" figure will be around half that so a 10% increase in costs would have an effect of around 25% reduction on total n making the net figure slightly under 2% before tax

Quote ="wildshot"From the horses mouth www.j-sainsbury.co.uk/media/3165 ... cement.pdf Sales £23,506m Profit before tax £587m If my calculator does not decieve me I make that a net margin of 2.33%. So how are supermarkets able to absorb price rises and not pass them onto the customer without making a loss?'" 2.49% on my calculator and Actually after tax the "net" figure will be around half that so a 10% increase in costs would have an effect of around 25% reduction on total n making the net figure slightly under 2% before tax

Thanks FT, I was getting 2.49% and 2.33% on my calculator so tried it in excel too. My calculator is a bit tempermental, although of course these figures are rounded up.

I prefer sticking to PBT since the tax can be variable rates depending upon historic losses, plus various tax complexities which can make a one off variation in the tax rate. Overall though I think we agreed on the point being made

You highlight the problem well in that yes it is greedy capitalism. You also further highlight the problem by then advocating voting for UKIP as though they will somehow change that.

Do you know, I was just going to say that Wildshot.

Tbf he's got Victiman down to a T hasn't he?

Haha only playing - no offence intended

Did I?

Where exactly.

Is that what you're reduced to these days sniping away from behind the bigger kids, very sad.

Well said Vasty!!