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pennywise

on the subject of money

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in mcnallys letter he says they have  had to round the prices up on some exisiting lines at the kiosks which will help reduce queueing times ? how does that work ? i assume he means there will be less people in the queues cos more people will go to morrisons and stock up before the game [:D]

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[quote user="pennywise "]in mcnallys letter he says they have  had to round the prices up on some exisiting lines at the kiosks which will help reduce queueing times ? how does that work ? i assume he means there will be less people in the queues cos more people will go to morrisons and stock up before the game [:D][/quote]I THINK he means a price of, say, £1.75, has been rounded up to £2. So either there is no change to give back or a round sum of change, making it a quicker transaction. That is his explanation. I just pass it on without comment.[H]

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[quote user="I am a Banana"]

[quote user="Houston Canary"]They could round down.[/quote]

that''s not what a good business does though!

[/quote]Depends on what you think a ''good '' business is.Some might reduce their prices by half and hope to sell more than twice as many, others might push their prices up and hope the customers are still willing to buy at least as many as they did previously.My gut feeling would be to slash the prices but I don''t then have to balance the books if it doesn''t work.......

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i can''t believe people are not up in arms over it..to  rounding  up prices is one thing but to make out its to keep the queues down and its for our own good is just a p1ss take..if  delia had said this we would never here the last of it..i know you don''t have to buy the stuff but even at last seasons prices the mark up on a bottle of carling for £3 must be huge ? and all confectionery costed at least 20p more than you could buy it for in the smallest of corner shops.. the club are playing a dangerous game a poor run of form and £31 for a ticket and being fleeced for a cup of coffee won''t seem such a good idea on a freezing january afternoon ...

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[quote user="pennywise "]i can''t believe people are not up in arms over it..to  rounding  up prices is one thing but to make out its to keep the queues down and its for our own good is just a p1ss take..if  delia had said this we would never here the last of it..i know you don''t have to buy the stuff but even at last seasons prices the mark up on a bottle of carling for £3 must be huge ? and all confectionery costed at least 20p more than you could buy it for in the smallest of corner shops.. the club are playing a dangerous game a poor run of form and £31 for a ticket and being fleeced for a cup of coffee won''t seem such a good idea on a freezing january afternoon ...[/quote]Frankly, if they sell 7 cups of coffee all season then the club won''t go bust.Rounding prices makes the transactions quicker and easier (though I''m not sure how paying with notes makes it any quicker), rounding up increases revenue, we''re £20m in debt and the sooner somebody makes some tough pragmatic business-led decisions rather than "nice little Norwich" decisions, the better our club will be.

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[quote user="Mister Chops"][quote user="pennywise "]i can''t believe people are not up in arms over it..to  rounding  up prices is one thing but to make out its to keep the queues down and its for our own good is just a p1ss take..if  delia had said this we would never here the last of it..i know you don''t have to buy the stuff but even at last seasons prices the mark up on a bottle of carling for £3 must be huge ? and all confectionery costed at least 20p more than you could buy it for in the smallest of corner shops.. the club are playing a dangerous game a poor run of form and £31 for a ticket and being fleeced for a cup of coffee won''t seem such a good idea on a freezing january afternoon ...[/quote]

Frankly, if they sell 7 cups of coffee all season then the club won''t go bust.

Rounding prices makes the transactions quicker and easier (though I''m not sure how paying with notes makes it any quicker), rounding up increases revenue, we''re £20m in debt and the sooner somebody makes some tough pragmatic business-led decisions rather than "nice little Norwich" decisions, the better our club will be.

[/quote]

and i have a mortgage so i''m £50,000 in debt  we''ve all got our crosses to bare [:D]

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I always thought the reasoning behind shops not selling stuff at round figures (OK Pound shops sort of blow this theory) was that the till was opened and change had to be given, thus relieving the temptation for unscrupulous assistants to just pocket the whole pounds as no change needed. 

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[quote user="pennywise "]i can''t believe people are not up in arms over it..to  rounding  up prices is one thing but to make out its to keep the queues down and its for our own good is just a p1ss take..if  delia had said this we would never here the last of it..i know you don''t have to buy the stuff but even at last seasons prices the mark up on a bottle of carling for £3 must be huge ? and all confectionery costed at least 20p more than you could buy it for in the smallest of corner shops.. the club are playing a dangerous game a poor run of form and £31 for a ticket and being fleeced for a cup of coffee won''t seem such a good idea on a freezing january afternoon ...[/quote]

The clubs would make around 100% profit on confectionary, crisps and soft drings and probably more on foods like hot dogs and sausage rolls.  Mark ups on Coffe/tea will be probably nearer 200%.

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[quote user="......and Smith must score."][quote user="I am a Banana"]

[quote user="Houston Canary"]They could round down.[/quote]

that''s not what a good business does though!

[/quote]

Depends on what you think a ''good '' business is.

Some might reduce their prices by half and hope to sell more than twice as many, others might push their prices up and hope the customers are still willing to buy at least as many as they did previously.

My gut feeling would be to slash the prices but I don''t then have to balance the books if it doesn''t work.......
[/quote]

its all about the price elasticity of demand [;)]a level business student [:P]

But if norwich raise prices further still then morrisions will have to buy in more stock me thinks!

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CallsignViper: Are carry-in''s allowed? I have no knowledge to the contrary, just curious...

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[quote user="Wings of a sparrow"]I always thought the reasoning behind shops not selling stuff at round figures (OK Pound shops sort of blow this theory) was that the till was opened and change had to be given, thus relieving the temptation for unscrupulous assistants to just pocket the whole pounds as no change needed. [/quote]No the reason was that people will perceive something to be cheaper at £2.99 than £3.00, as it starts with a lower number.  This was the case when they first started doing it, but it has lost the impact now.  That''s why some shops have gone back to round numbers, particularly where they are not trying to differentiate on price, like M&S.

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The latest psychological thing recognised in retail is ‘sevens’ – we humans seem to embrace the digit ‘7’ very readily – there are lots of examples; The Magnificent 7, 7 Habits of highly effective people, 7 Up, 7 dwarfs (no pun intended), Lucky 7 etc etc.

 

Why else have Asda, Sainsburys and Tesco started retailing cd’s at £9.77?

Because it’s proven to work!

 

Just checked, and there are some £8.93 prices appearing at Tesco now; that’s because a price point with progressively lower digits is perceived as more acceptable than a figure that is level or one that increases.

 

Over the past 3 years I have successfully tested this theory within my own business and it’s been very useful. 

 

Given his decision to simply round prices up, I’m not expecting a ‘phone call from Mr McNally to register his interest in this particular mindset subject though!

 

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[quote user="Norfolk Mustard"]

The latest psychological thing recognised in retail is ‘sevens’ – we humans seem to embrace the digit ‘7’ very readily – there are lots of examples; The Magnificent 7, 7 Habits of highly effective people, 7 Up, 7 dwarfs (no pun intended), Lucky 7 etc etc.

 

Why else have Asda, Sainsburys and Tesco started retailing cd’s at £9.77?

Because it’s proven to work!

 

Just checked, and there are some £8.93 prices appearing at Tesco now; that’s because a price point with progressively lower digits is perceived as more acceptable than a figure that is level or one that increases.

 

Over the past 3 years I have successfully tested this theory within my own business and it’s been very useful. 

 

Given his decision to simply round prices up, I’m not expecting a ‘phone call from Mr McNally to register his interest in this particular mindset subject though!

 

[/quote]Or they''re trying to undercut each other, and second guessing the competition''s lowest threshold.The supermarkets generally sells DVDs & CDs cheaper than anywhere else,  but psychologically, punters look at the ''£ value'' first and decide whether it is lower than the next whole number. Tescos weird pricing isn''t entirely all for  psychological purposes, 77p & 83p are for undercutting competition and for balancing up other offers in the shop.  If Tesco has 2-4-1 on pizzas they make the money up on putting soap powder up.  If they slice 21p off a CD making it 9.77 they''ll bung 21p on lager. They have a weird system that trick us into thinking they are the cheapest when really they''re not.

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Anyway McNally rounding prices up in the ground is fine as there is no competition within the ground to compete with the £2 bottles of coke.  The danger is plenty of fans walk past Morrisons and can buy a drink, pie & some sweeties for £2 before they enter the iron curtain.

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[quote user="pennywise "]i can''t believe people are not up in arms over it..to  rounding  up prices is one thing but to make out its to keep the queues down and its for our own good is just a p1ss take..if  delia had said this we would never here the last of it..i know you don''t have to buy the stuff but even at last seasons prices the mark up on a bottle of carling for £3 must be huge ? and all confectionery costed at least 20p more than you could buy it for in the smallest of corner shops.. the club are playing a dangerous game a poor run of form and £31 for a ticket and being fleeced for a cup of coffee won''t seem such a good idea on a freezing january afternoon ...[/quote]

Couldn''t care less to be honest. They can put the prices up as much as they like - just don''t buy. Whilst I would love to make an extra ever so small contribution to the Club''s coffers, I think I am old enough now to realise when someone is trying to rip me off.

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[quote user="CallsignViper"]I''ve just bought me a small thermos flask for £3 and a jar of bovril for £2. So after 2 matches, my half time drinks are free.[/quote]Not anymore it`s not. didn`t you see the signs Only food and drink purchased on the premises may be consumed.Flask detectors installed at every entry point. Pies and sandwiches will be resold in the kiosks

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