Fair. Balanced. American.

Thursday, October 15, 2009

A 4000% markup

Consumer reporting being what it is in America (aside from, of course, Consumer Reports, a certain amount of ignorance is to be expected.  The British tabloids, however, were all over this.

Up to 40 per cent off the price of Gillette razors is being shaved off at Asda.
The supermarket has cut the brand's Fusion, Mach 3 and Mach 3 Turbo replacement cartridges from £8 to £5.

It says it is acting on widespread anger about the cost of shaving products - with 78 per cent of men regarding razors as the biggest ripoff item in their shopping trolleys.

Asda's move, expected to be copied by rivals Sainsbury's, Tesco and Boots, follows a Daily Mail report last June which showed a mark-up of more than 4,000 per cent on shaving products that cost a mere 5p to manufacture.

As well as slashing prices, Asda lashed out at Gillette's owner, Procter & Gamble, calling for it to listen to its customers and charge less. [...]

'Razors are one of the most expensive everyday essentials shoppers put in their baskets yet are reported to cost as little as 5p to make, demonstrating just how much profit manufacturers make on every sale,' an Asda spokesman said.

Fortunately for Gillette, consumers in our own country receive their news from networks that are owned by toaster/missile companies who depend on razor companies for advertising revenue. And we love our $4 Fusion blades. That $3.90 markup only makes us prouder to be Americans, where at least we know we're free.

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