7/11 Inverted Logic

[ExpatOilWorker]

I guess 7/11 subscribe to the philosophy that if you can afford the bigger bag, then you can also pay more. When purchasing a bit of junk food I noticed the below pricing for Lay Original flavor chips. The bigger bag you buy, the less bang for your bucks you get.

27 g 10 baht = 2.7 g/baht

52 g 20 baht = 2.6 g/baht

75 g 30 baht = 2.5 g/baht

At the same time the no-name shop at the end of the soi have a 105 g bag for 35 baht = 3 g/baht, which of course beats anything offered by 7/11.

[stoneyboy]

Only realised by expat oil workers in times of austerity and oil prices below $50 a barrel.

I remember the good old days in the North Sea on the Jasmine hook up,Walkers Prawn Cocktail,Cheese and Onion as well as Monster Munch Pickled Onion and Tunnocks wafer bars plentiful and free from the clean non smoko shack.

Tins of Barrs Irn Bru abound to appease the northern folk.

Alas bygone days.

Edited November 25, 2015 by stoneyboy

[colinneil]

Good god what a boring life you must have, if you have time to work that out.

[TheCruncher]

27 g 10 baht = 2.7 g/baht

52 g 20 baht = 2.6 g/baht

75 g 30 baht = 2.5 g/baht

May be it's only me, but I don't see anything wrong with the pricing structure, where the price per gram decreases where the volume increase.

What I see though, is that the biggest bag is a different product from the other 2, so OP is also comparing apples with lemons.

Must indeed be slow in the oil business.

Edited November 25, 2015 by TheCruncher

[ExpatOilWorker]

27 g 10 baht = 2.7 g/baht

52 g 20 baht = 2.6 g/baht

75 g 30 baht = 2.5 g/baht

May be it's only me, but I don't see anything wrong with the pricing structure, where the price per gram decreases where the volume increase.

What I see though, is that the biggest bag is a different product from the other 2, so OP is also comparing apples with lemons.

Must indeed be slow in the oil business.

You do know there is a difference between baht/g and g/baht, right?

[Crossy]

This reverse logic is incredibly common all over (including the West).

Many of us were conditioned to assume that bigger pack are better value (because once upon a time they were), so the supermarkets can get away with higher per unit costs when selling the bigger packs.

Several UK consumer programmes have exposed the perpetrators (all big names), with little effect I suspect.

[KhunBENQ]

You do know there is a difference between baht/g and g/baht, right?

Indeed the topic starter might have confused some by using the invert to proof the invert.

10 Baht / 27 g = 0.37 Baht/g

20 Baht / 52 g = 0.38 Baht/g

30 Baht / 75 g = 0.40 Baht/g

The bigger the pack the higher the unit price.

The difference is ~ 8 %.

Mr. 7/11 has about 14.5 Billion $ on assets (21 Billion "real time")

Wish I had 8 % of that

http://www.forbes.com/profile/dhanin-chearavanont/?list=thailand-billionaires

As @Crossy points out, this fooling of customers is neither bound to Thailand nor to 7/11.

When I shop at Makro (cash and carry) I see multiple examples for that.

I hesitate to cite examples as we have so many rich members here who don't care about spending.

Most stupid examples are refill packs which are more expensive than (or equal as) a new dispenser (seen at Tesco, BigC, name it).

One of the most useful apps on my smartphone is called "RealCalc"

Edited November 25, 2015 by KhunBENQ

[Inn Between]

And then he noticed why the bag in the no-name shop was priced better -- it was 3 years old.

Just kidding. I know what you mean. I've often seen multiple packs of products work out to a higher per-unit price than buying them individually.

[1BADDAT]

You do know there is a difference between baht/g and g/baht, right?

Most stupid examples are refill packs which are more expensive than (or equal as) a new dispenser (seen at Tesco, BigC, name it).

Noticed this one too and the original package is a big part of the cost. I buy the original, not the refill.

[samsensam]

you have too much time on your hands!

i like the 7/11 logic where the more customers in the shop the fewer cash tills they open - and they play the game of having staff behind the counter checking stock, looking at the computer, checking their phone.... anything but opening another cash till.

[Seligne2]

How do you think 7-Eleven became so huge? Most are not as perceptive as you.

[Suradit69]

27 g 10 baht = 2.7 g/baht

52 g 20 baht = 2.6 g/baht

75 g 30 baht = 2.5 g/baht

Generally the unit price for things bought in larger sizes/quantities are cheaper than when bought in smaller amounts. I don't see the problem with the pricing logic.

Edited November 25, 2015 by Suradit69

[SoiBiker]

You get more air in the bigger pack.

[BuaBS]

You are right Expatoilworker , but not just 7/11 . Potato chips are very expensive here. Lays=pepsi=US so I don't buy them , and they made me puke. The few other brands like tesco's own chips are not much cheaper . In Aldi/Lidl 175 gr big pack : 18 B !! And they are tasty.

Snacks here are terrible , and the shrimp & fish based stuff uneatable .

But it is true in Thailand small packages are often cheaper than big ( not just food but also shampoo , ...)

[vento]

They Warm my toast for free, all paid buy the chips Lovers

[DogNo1]

7/11 stores in Japan are hugely succesful. They are clean and sell excellent food and snacks. Their owner, 7&I Holdings is a very rich company indeed. Their take-out dinners are tasty, nicely made and attractively packaged. 100% better than the stuff in the states. Maybe 250% better than the stuff in Thailand.

[ExpatOilWorker]

27 g 10 baht = 2.7 g/baht

52 g 20 baht = 2.6 g/baht

75 g 30 baht = 2.5 g/baht

Generally the unit price for things bought in larger sizes/quantities are cheaper than when bought in smaller amounts. I don't see the problem with the pricing logic.

Oh boy, I guess inverting the inverted 11/7 price structure is a tough concept to grasp.

[ExpatOilWorker]

7/11 stores in Japan are hugely succesful. They are clean and sell excellent food and snacks. Their owner, 7&I Holdings is a very rich company indeed. Their take-out dinners are tasty, nicely made and attractively packaged. 100% better than the stuff in the states. Maybe 250% better than the stuff in Thailand.

Totally agree, 7/11 in Japan is very well run an offer some taste snacks including all kinds of ready-to-eat meals from sushi to spaghetti with meat sauce.

To be fair, the Thai 7/11 often are a little organized oasis amidst all the chaos in this country.

Edited November 26, 2015 by ExpatOilWorker

[KhunBENQ]

Oh boy, I guess inverting the inverted 11/7 price structure is a tough concept to grasp.

Some will never get it

[1BADDAT]

Oh boy, I guess inverting the inverted 11/7 price structure is a tough concept to grasp.

Its not a tough concept to understand, but it is not something you will see anywhere in the marketplace. So by human nature one will just glance at what you stated and assume its baht/gram. I am an engineer and I deal with units all the time and I had to do a double take to recognize what you were saying.

[ExpatOilWorker]

Oh boy, I guess inverting the inverted 11/7 price structure is a tough concept to grasp.

Its not a tough concept to understand, but it is not something you will see anywhere in the marketplace. So by human nature one will just glance at what you stated and assume its baht/gram. I am an engineer and I deal with units all the time and I had to do a double take to recognize what you were saying.

My favorite unit is kgm^2/s^2, raw and pure energy.