Illogical pricing

[LukKrueng]

17 hours ago, hobz said:

Yes, more often than not it's logical, even in Thailand.

 

But errors happen frequently in Thailand. But errors never happen in Sweden (well, almost never.. I didn't see it once in 30 years.. I Thailand ive seen it countless times in 6 years). What is different between Sweden and thailand?

maybe it's not errors. Maybe it's marketing issue based on local buying habits. The fact that it's not like in Sweden and not logical to you means nothing. 

[tweedledee2]

  I seldom shop at 7/11 for groceries other than a quick trip for milk or bread. I shop mainly at Big C and Tesco.  Yesterday I bought 6 bags of Lay's potatoe chips 158/160gram packs for 220 baht total, priced @ 55 baht each buy 2 get 1 free at Big C. 

 This pricing issue also occurs at Wal-Mart. On occasion, you will find 3 different size packages or containers of the same product. Sometimes, the middle size package can be the best value.  I am not certain of the exact percentage of profit, but Wal-Marts retail pricing markup is determined by actual cost from the supplier.  Sometimes the retail pricing at a Wal-Mart store is cheaper than at their Sam's Club for the same product. 

[jgarbo]

18 hours ago, upu2 said:

It is the same in Greece. I think you have to be a local to really understand the "logic" of it

As for the Swede's complaint: The chips are cheaper in the bigger bag -  Bt2.5/gm vs Bt2.65/gm the smaller. Standard discount for volume. The beer price I'd guess is a labeling mistake. Buy singles.

I watch for "arbtrage" at supermarkets, eg a black rice vinegar I like is Bt28.90/625ml (big) vs Bt26.90/250ml. Crazy. A packaging/ barcode error. I buy as many big bottles as they have, when on sale. Seller's mistake. Caveat Venditor. HTH

Edited August 8, 2018 by jgarbo

[Retiredandhappyhere]

At Tesco in the UK, I was charged for two bags of cat food at 19.80  pounds each, whereas I only had one. With no waiting at the "Customer Service" counter,  I explained the position. and the girl handed me 39 pounds, without even checking the contents of my car. in which I had already loaded the purchases. 

 

I explained to her that she had made a mistake and that she should only have refunded 19.80 pounds, as I actually had received one bag of cat food.  She pointed to a notice over her head which explained that if a customer is overcharged, Tesco will refund TWICE the difference.   Incidentally, another notice stated that, if more than 4 customers are waiting at any one of the 24 check-outs, an additional check-out will be opened.

 

Although that system does not seem to apply to Tesco in Thailand, I have no knowledge of ever having been overcharged by that store, although I have witnessed what appeared to be deliberate attempts to short-change me, particularly at builders merchants, where often quite large purchases were being made.  I say "deliberate", because immediately on my mentioning the shortchange, say of 100 baht, the assistant handed the 100 baht over, without any further checking.  

[elgenon]

When I pay a bill I have figured the total in my head while they reach for their calculators. But it is a learned skill.

Just like expats can't believe a taxi driver can not read a map. I showed a map to a server one time. One time. It seems intuitive to me. But it is not to them.

[jgarbo]

17 hours ago, Vacuum said:

What sort of visa do you have?

You have to show a visa at 7/11 to buy chips?

[jgarbo]

17 hours ago, Vacuum said:

What sort of visa do you have?

You have to show a visa at 7/11 to buy chips?

[jgarbo]

17 hours ago, Vacuum said:

What sort of visa do you have?

You have to show a visa at 7/11 to buy chips?

[elgenon]

21 minutes ago, Spidey said:

50%

Oh I get it. She knows percentages. I thought you were saying she thinks of everything in terms of 50/50.

[jgarbo]

17 hours ago, Vacuum said:

What sort of visa do you have?

You have to show a visa at 7/11 to buy chips?

[tweedledee2]

2 minutes ago, jgarbo said:

You have to show a visa at 7/11 to buy chips?

Do you stutter or just having a Ground-Hog Day movie moment.

[owl sees all]

This happened to me just last week. I saw 'friskies' (very nice on toast) at 20 baht a can. I also saw packs of 12 on the shelf. I enquired the price. 249 baht.

 

I bought all the single cans (15). What a bargain!! 3 cans for 100 baht in Big C.

 

Just have to get a cat 

[Vacuum]

13 hours ago, digbeth said:

Thai law also require price per unit

Have only seen this in Macro.

[sstuff3]

Hi,
 
I'm from Sweden. Lived 30 years in Sweden. 6 years in Thailand.
 
When I buy stuff I almost always check how much I save if I buy bigger pack. This way I have discovered illogical prices frequently and constantly in Thailand.
 
I'm not talking about street vendors. I'm talking about the big stores.
 
In 7/11, Tesco, big c, makro. Etc.
 
For example, lay chips in 711 20THB for 53g bag and 30THB for 75g bag. 
 
Or in Tesco one San mig Light bottle might be 38THB and 4 bottles is 159THB.
 
Washing deterrents often have illogical prices here too.
 
 
I know, I know, just pay attention and be happy. Ok cool. Done.
 
But why does this happen in Thailand and not in Sweden? 
Does it say more about Sweden or Thailand?
What does it say?
I don't think Thai people are stupid, because I never saw street vendors make this mistake. 
It only happens in the big chains.
And if it's a business practice, why don't they use that same practice in the big chains in Sweden? 
 
What is the difference? Does it say or tell anything about the cultures of Sweden or Thailand?
 
 

This obviously is intentional as I have found the same thing often. It is often cheaper to buy the individual items instead of the bulk packed items here. No need to try to "educate" the shop employees as I am sure it's intentionally done. I've shown my wife how to compare and she gets a good laugh every time she finds a "deal".


Sent from my SM-N910C using Thailand Forum - Thaivisa mobile app

[Tchooptip]

You seem to be completely unaware that it is exactly the same in many countries and certainly of most in Europe for years.

I never needed a calculator, I do it as quickly. Now you will notice that it is only a tiny difference.

In your example of 4 San Mig it comes to 7 Bhat less than 2 baht per bottle. Supermarkets around the world are Mafias and the boss Mafiosi. Their department heads take classes, that is to say, go to school to better steal the most money to consumers without it being noticed too much. At the beginning of the supermarkets, 50/60 years ago Supermarkets were famous for the larger quantities being more interesting. Now, and for at least twenty years, they understood how to use it to poke a bit more money discretely in the consumer's pockets, and everywhere believe me! I do not count the number of times I pointed out to my friends that a bottle of Coca 1500 ml was illogically 2/3 cents more than two of 750ml. And it's exactly the same with tons of products. .. trust me I count faster than my shadow, to maintain that years ago while going to work, driving I added mentally all the numbers of the car plates around me, in the supermarket I do the same with the products and believe me very few people realize it, and often when I'm talking about it I'm told it's not possible you must be wrong they would not do that ... Yes, they do that everywhere.

So maybe Sweden is an exception,

[ToddinChonburi]

Tesco is really good at it. Sale price on shelves but not at check out.

Ask at register about promotions on weekends. 

Many times 2 or 3 smaller bags of detergent cheaper than bigger. 

Edited August 8, 2018 by ToddinChonburi

[smotherb]

19 hours ago, upu2 said:

It is the same in Greece. I think you have to be a local to really understand the "logic" of it

Actually, it is done almost everywhere. In marketing terms, it is called "Idiot Pricing." It is a common pricing scheme in warehouse stores; you really need to compare the prices. Often you pay more for a larger lot of the product. The most famous one in the US occurred several years ago and was perpetrated by McDonalds'. It seems basket ball star Scottie Pippen made a commercial for Mickey D's; Chicken McNuggets, six for $0.99 and nine for $1.59. Only the mathematically challenged, or those who don't think, really suffer; hence, the term "Idiot Pricing"  Scottie made the commercial, touting the nine McNugget deal, then became aware of the rip-off and had Mickey D's stop it.

[Cyclone88]

19 hours ago, hobz said:

Tesco might be doing it on purpose. Retail trick. People expect the bigger pack to be cheaper and are too lazy to make the calculation.

Correct.

Customers always tend to go for the larger pack as they automatically believe that it will save them money.

This is normal practice throughout the world not just Thailand.

[NoshowJones]

19 hours ago, hobz said:

Business Visa 

What has anyones visa got to do with this thread?

[Thaidream]

It is Thai logic driven by the concepts of face; mai pen rai and gren jai.

 

-Most Thais never complain about anything and therefore are ripe  for those with money to use this against them to make extra money.

 

I have seen illogical pricing for decades in Thailand.  I have watched a land owner lose a business  who is renting by doubling the rental price and the land/building stay empty for years rather than the land owner negotiating and lower the price.

 

I have seen Thai business lose customers to lower priced competitors ad raise their own prices trying to make up the difference.

 

I have seen  people  start a successful small business then surrounded by others copying the same business and everyone fail due to not enough customers for everyone.

 

I have seen a bar/restaurant keep their prices high while their customers dwindle away and refuse to lower the prices and eventually close from a lack of customers.

 

Loss of face means everything  in Thailand- you can go broke from it or even die from it.

[CLW]

Hi,
 
I'm from Sweden. Lived 30 years in Sweden. 6 years in Thailand.
 
When I buy stuff I almost always check how much I save if I buy bigger pack. This way I have discovered illogical prices frequently and constantly in Thailand.
 
I'm not talking about street vendors. I'm talking about the big stores.
 
In 7/11, Tesco, big c, makro. Etc.
 
For example, lay chips in 711 20THB for 53g bag and 30THB for 75g bag. 
 
Or in Tesco one San mig Light bottle might be 38THB and 4 bottles is 159THB.
 
Washing deterrents often have illogical prices here too.
 
 
I know, I know, just pay attention and be happy. Ok cool. Done.
 
But why does this happen in Thailand and not in Sweden? 
Does it say more about Sweden or Thailand?
What does it say?
I don't think Thai people are stupid, because I never saw street vendors make this mistake. 
It only happens in the big chains.
And if it's a business practice, why don't they use that same practice in the big chains in Sweden? 
 
What is the difference? Does it say or tell anything about the cultures of Sweden or Thailand?
 
 

Your example prices the the lays and San Miguel Beer might be the packaging costs. Bigger plastic bag and the cardboard box.
In Europe the manufacturers might not give these costs to the customer but here is Thailand.

Another example of illogical pricing here is the price of some hotel room. If there is not enough occupancy they increase the rate instead of making it cheaper to attract customers...

[Bangkok Barry]

2 hours ago, Retiredandhappyhere said:

At Tesco in the UK, I was charged for two bags of cat food at 19.80  pounds each, whereas I only had one. With no waiting at the "Customer Service" counter,  I explained the position. and the girl handed me 39 pounds, without even checking the contents of my car. in which I had already loaded the purchases. 

 

I explained to her that she had made a mistake and that she should only have refunded 19.80 pounds, as I actually had received one bag of cat food.  She pointed to a notice over her head which explained that if a customer is overcharged, Tesco will refund TWICE the difference.   Incidentally, another notice stated that, if more than 4 customers are waiting at any one of the 24 check-outs, an additional check-out will be opened.

 

Although that system does not seem to apply to Tesco in Thailand, I have no knowledge of ever having been overcharged by that store, although I have witnessed what appeared to be deliberate attempts to short-change me, particularly at builders merchants, where often quite large purchases were being made.  I say "deliberate", because immediately on my mentioning the shortchange, say of 100 baht, the assistant handed the 100 baht over, without any further checking.  

 

At a Thai Tesco, I bought two shirts that had a special price if you bought two. They charged me the full price, and when my wife and I queried it at Customer Service they lied and said the offer ended the day before. So I had to go back to the rack and physically bring to them the special price label. No apology, no double refund. That would have meant they were wrong, which as we all know is something that is impossible with a Thai. They would lose face, so they are always right. Even when they are not.

[manhood]

There is no logic thinking existing  in Thailand 

[khunPer]

On 8/7/2018 at 11:23 AM, hobz said:

But why does this happen in Thailand and not in Sweden? 

Does it say more about Sweden or Thailand?

What does it say?

I don't know about Sweden, but in neighboring Denmark it happens same as in Thailand, so keeping eyes open and checking prices comes with me from my home country, where it sometimes were cheaper to buy a number of small packs, than a "discounted" bigger pack.

 

Has to do with psychological prices; or easy prices, like the 20 baht and 30 baht chips, even 3 x 20-baht packs are slightly cheaper than 2 x 30-baht packs, as you get 9 gram more.

 

And your beer bottles, you might pay little extra for the 4-pack carton sleeve with a handle.

 

Always check content when comparing prices, for example some times the smaller 500 ml bottle might be relative cheaper than the "discounted" 750 ml bottle...?

[hidbehindthesofa]

Getting back to the original issue . . .

 

Is it related to the way many Thai people shop and Thai logic ?

 

Many Thai people buy single units or smaller packs because that is all they need at that moment or on that day - and they may not have enough money to by multiples or larger packs in any event.

 

Therefore, the turnover on single units or smaller packs is greater and therefore those items can be sold at a lower price.  (It has to be better to sell ten individual bottles of beer to ten individuals than to sell five packs of four beers to five people, right ?)

[Ajarnbrian]

Not all buyers are rational in their decisions to buy and many would not use a calculator to check size/weight and price. Not all sellers are rational either and may be unaware of price changes on one item not matching prices of other items. For those of us who try to be more rational consumers, this all seems change but there is no hidden mystery.

[DJ54]

In US it happens on some items. If your frugal compare the prices and decide which one fits. McDonalds has the so called value meal and in some cases buy the value pack or each separately and the price is the same. 

 

Thought that Mackro and those types of stores would offer discounts on bulk buys but not really the case on 

items I’ve looked at 

[duanebigsby]

This is not a Thai thing. It's worldwide.(except in Sweden of course)

[Jadam]

I don't think Thai people are "stupid" (on average) compared to furang but perhaps they can't be bothered to do the math more often.  Or they don't mind paying a few baht more for a single pack as opposed to a bunch of little ones.

 

Another factor may be that companies target people with less money when they put things in smaller packs, hoping to sell more with less profit on each item.  I read about how Coke just about went bankrupt in India a long time ago because their bottles were too big (and too expensive) for the average person to buy.  Then someone decided to sell a smaller bottle with a smaller profit margin and sales went up more than enough to make up the difference.  The large bottles are probably still for sale most places, but they don't sell as many of them.  It could be that this marketing tactic exists in Thailand (especially at places like 7-11) but not in Sweden because of a difference in income gaps between the two countries.

[Jadam]

Quote

 

I have seen  people  start a successful small business then surrounded by others copying the same business and everyone fail due to not enough customers for everyone.

I've seen this one.  Can't figure out why, if people are going to copy someone's business idea they don't at least open their business in a different location.