Heinz not to supply Tesco with its products
 

It seems Tesco is suggesting the price rises for Heinz products is unjustifiable and so Heinz will not to supply Tesco with its products according to the news. I would have thought it would be better to say, Tesco wont buy Heinz products as the price rises for Heinz products is unjustifiable.

confused as to whos' choice it is

macafee2

Its not the first time Tesco has taken the huff with a supplier. Tesco stopped stocking a lot of far eastern foods and have never restocked them after it fell out with the supplier.

I suppose it depends who made the decision to stop the supply to Tesco.

If Tesco have said no your price increases are too high, we're not buying from you, then yes.

If Tesco have tried to swing their weight as a big customer, and told Heinz we're not paying that, expecting Heinz to reduce the price, but Heinz have told them to swivel, and won't supply until Tesco agree to the new prices, then the headline would seem appropriate.

I'd like to see the justification behind some of the prices Tesco charge for things, that can be had much cheaper at the other supermarkets within 2 miles of them here.

I find Tesco's newly established stance of high prices and excess profits really quite commendable! ;):D

Well said that man:}

A customer of mine in the Cotswolds who supplies ready to eat Salads in small packs was asked by Tescos to go there head office to quote on supplying them. She went with various samples and said told them what she was going to charge them for various quantities ect ect.


Apparently she didnt understand the way Tesco work, they were going to tell her how much she could charge them, any faulty products carried a penalty and they also would pay her on 90 days.


She declined and walked out, they rang her a couple of days later to ask had she reconsidered? Anyway to cut a long story short they basically wanted her to make an 18% profit, she worked it out that with the extra people she would have to employ and the new equipment needed together with a bigger site she would be making no more money than she was but would have a lot more work to do. Basically Tesco wanted her to spend her money for a new product line.



Several months later they sent some one round to her site to see if they could persudae her, these big companies dont care about these suppliers all they care about is a profit.

She dodged a bullet there. If she'd have signed up, after a short while, they would most likely have been onto her to reduce her costs slightly. Little later on it would be can you reduce them a little more and so on and so on. However the prices in their stores would not be reduced.

Good on her.

Agreed, luckily her brother had dealings with Tescos a few years earlier as he has a farm. He was put over the coals on the price of pork, luckily he found another buyer who was willing to pay a proper price. He had warned her so she wasn't going to be taken for a fool.

M&S used that type of business modelling since the sixties. From buying a few hundred samples for one of the seasons (i.e. summer or winter) if successful, would keep upping the order until it became the major product of the supplier. They would then tell the supplier the price they would now pay. The manufacturer usually had no choice but to accept as their product range was then limit for M&S.

Kev

Wonder if they will stop selling fuel :}