Ever wonder why you pay so much for groceries? Informative - The grocery business in general
I have several posts on this site concerning grocery stores in general. Poor service, lack of product, high prices, etc. Have you ever heard people say, “remember when grocery stores had friendly people as employees?” This might give you an insight as to where your money goes when you buy groceries and why the people they take your money in the stores might not seem “friendly”:
Most grocery chains create high paying jobs in the form of “upper management” and “supervisors”. By creating these high paying positions they receive a major tax break by the government. The more of these high paying jobs, the bigger the tax break. When the chains find themselves lacking “profit”, they have to make “cut backs”. These “cut backs” are ALWAYS at store level. They cut the hours for employees at the stores thus saving that much money. What they really don’t seem to understand is that the people they “cut” are the ones who actually do the work for the consumer. The sad part is, roughly 85% of these people in “upper management” will not get in the stores and get their hands dirty. Why should they? A person of their “position” surely can’t be expected to “work” as a common store employee. Yet they can give orders to what store employees are left after the “cut backs” to “get the job done or be fired”. Stocking shelves in a grocery store is not rocket science, but it still takes a thinking human being to open those boxes, make sure the product in those boxes is fresh, and put the product on the shelves for the consumer. When companies “cut back” the hours for these working positions, the store itself and the patrons who shop it suffers.
Manufacturers of products you buy have what’s called “sales reps”. These are rapidly becoming a thing of the past. A “sales rep’s” job is/was to go into the stores and “monitor” their products (i.e. rotating the product for freshness, make sure all products are carried by the store, make sure the shelf space is clean, etc.). Now, the geniuses that run the grocery chains (most of them, anyway) have decided the manufacturers need to fire their sales force and give all money intended for those positions to the grocery chains themselves. They claim with this extra money, the chains can hire more people to run the stores properly. Has anyone seen that happen? This extra money does not go into the stores but into the pockets of the shareholders and upper management in various ways (some call it “bonuses”). Is it really any wonder the store employees might not be real happy with their job situation? Ever wonder why you hear stories of people “working off the clock?” If these “middle men” were done away with, the stores could operate properly and the consumer could save money by paying less for the products.
This post is not intended to be a complaint. I simply wanted to give anyone interested a little insight as to where your hard earned dollars go when you visit the grocery store. Anyone reading this post has a right, as a consumer, to ask questions. Ask the manager where you shop how their company is run. If he won’t help, go over his head. All grocery stores are run differently. Find out what goes on where you shop…then decide if you want to give them your hard earned cash.