Quote:
Originally Posted by Kabaal
It shouldn't affect the farmers, they'll still be selling it to Tesco for the same price. Tesco are lowering the cost via cutting their profits on it is all.
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Have you ever dealt with the large supermarkets? I know people who have supplied to them, and I can tell you that Tesco will almost certainly not be the ones experiencing any losses on this. The suppliers will.
All the large supermarkets take advantage of their dominance in the market to screw suppliers down to the lowest price possible. Often a price that is not actually profitable for the supplier, which puts the supplier in the nasty position of making no profit on a deal, or losing one of their biggest customers.
My family experienced something similar when we had a newsagent in the 80s. News International reduced the cover price of The Sun to below what they were selling it to us wholesale for. They did not reduce their prices, and when we complained, they said the low price of The Sun would attract extra custom, so other products would see increased sales. We were the only newsagent in the area, so that didn't happen and we actually lost over £60,000.