cancel
Showing results for 
Search instead for 
Did you mean: 

Overpriced - An Idea?

Highlighted
Respected Contributor

Overpriced - An Idea?

When I read this, I wondered whether Lidl (and Aldi of course) had thought about having a concession in hospitals and other public service organisations. The items would no be branded, but certainly better value and often better quality. Perhaps a single (or two) person establishment. Fresh fruit, snacks, bakery and beauty. Link

18 REPLIES
Trusted Contributor

Re: Overpriced - An Idea?

Good idea @Tanith - visited Kings College Hospital in South London last year. They had Marks & Spensive and Costa Coffee fleecing the visitors

Regular Contributor

Re: Overpriced - An Idea?

I think that would be a terrific idea but I would image that there would be few products (even at Lidl prices) that would sell in quantity in a hospital - but I could be wrong.


The trouble with the concessions in any organisation is the amount of money charged for them to be there in the first place. Consequently it is only the companies selling higher priced goods that are able to open concessions. I know this as I have personal experience. I worked for a retailer who sold higher priced branded shoes and all of our outlets were in Department stores (usually where more affluent people shop) but one by one we were forced to close them down as the stores pushed up their annual charges. We obviously had an head office to deal with the administration but, OK, we didn't have to cover any expenditure by having our own shops other than wages and associated costs plus buying stock but I think the owners use the concessions to ensure that their stores stay financially secure for as long as possible.  One of our independent stores in Yorkshire were charging us 33% of all sales and should this not be enough there was a contracted minimum amount to be paid annually - of course they took their cut first before sending the cheque to us each month.  But if we sold more and gave them more commission than the annual amount due it was all to their benefit - not ours.

 

This happened all over the country - so it is obviously accepted practice.  As I said eventually the company was forced to close completely but at least we did not have to go into receivership.

Respected Contributor

Re: Overpriced - An Idea?

Ah, but the concept is rather more idealised than that.

Lidl opens a concession, selling toiletries, beauty, fresh goods, snacks etc. All the items are Lidl branded items. It is a marketplace for Lidl. Showing hospital visitors, staff and patients how good their products are. Deliveries are dropped off by the lorry making for the usual Lidl store (no additional lorries needed).

Yes there will be additional costs, but they will be minimised.

Regular Contributor

Re: Overpriced - An Idea?

Sorry @Tanith but I cannot see your 'idealised concept' taking shape any time soon.

 

The turnover of the own brand products would have to be enormous to cover the cost of staffing and concession costs.  In our local hospital (which incidentally looks like a Las Vegas resort - particularly at night!) has the Costa and W H Smith concessions but particularly with Costa that remains almost empty all day whilst the volunteer cafe has queue's at anytime of the day/evening and is used by the doctors, nurses and the public.  They serve everything - food, snacks and any drink you want because everywhere has machines these days which make equally as good quality drinks as you would pay 3 - 4 times more for.  So the concept of there being somewhere to buy want you need more cheaply I agree with but for a commercial business with all the overheads which would be involved there would have to have a huge turnover of the items you suggest at every hospital .  As for the newspaper/magazine trade I was informed by Lidl customer service that that is a sort of concession as they have no control over which publications are offered for sale.

 

As regards to the Costa concessions they must be making huge profits at some outlets  (their own coffee shops in city centres or railway stations and the like) to cover the costs of the low turnover outlets.  As you must have noticed yourself almost every person you see in the towns and cities is carrying a drink in one hand - hence the problems with the number of disposable (but not recyclable) cups.  I wonder if is a passing trend?   But I diverge, The same could also be said of W H Smith too.  The items that these concessions sell have to have a high price or high profit margin i.e. coffee and glossy magazines, chocolates etc.  As I said first of all in my previous comment about the company I worked for selling shoes the price of these top brands the public buy compared to the cost to the company was huge - even at sale priced 50% off we still made a profit.   The manufacturers we dealt with all had 'recommended' prices but no one in the trade sold them for less unless they were out of production and put aside until the next 'Sale'.  The customers did infact save money but by the same token so did us the retailer.   I've never been much of a sale shopper since finding this out.

 

Respected Contributor

Re: Overpriced - An Idea?

At the Alder Hey children’s hospital in Liverpool’s were told of people missing their scheduled appointment because they were held in the long queues at the Costa coffee. @SuzyQ@Tanith@Duchess@gruner

 

Rage and Love
Regular Contributor

Re: Overpriced - An Idea?

Yes, @Sx I know certain Costa outlets are extremely busy and can only guess at the profit made from the products on offer but wasn't there another alternative café /coffee shop? Perhaps there are queues there too. If as @Duchess says the hospital is out of town surrounded by its own grounds then there is no other choice. Our main hospital sandwiched between an Aldi, B & Q and a Morrisons! Very fortunate for those who object to the price of hospital car parking too!
Respected Contributor

Re: Overpriced - An Idea?

@SuzyQ@Tanith@gruner-  I obviously don't have the figures, but the shops in my hospital (I believe there are more in Southampton) are very busy.  Where a hospital is away from a town, as ours is, out in the sticks, there is a huge market for stuff, not only for patients, but staff too.  I think I've said elsewhere that I suggested a small supermarket when I was there in the 90s.  Ignored, of course! 

When I worked there, full time, there was no time in the lunch hour to get to Salisbury and back by any means and after work you're either knackered or the shops are shut.  And don't forget shift patterns, which mitigate against normal shopping (and life in general!).  The patients have to supply their own toiletries etc.  There is a little bank and in the olden days, nurses would take patients' cards and get them money.  Now there are a couple of cash machines.  I'm pretty sure WHSmith will be leaving us soon, I think because they don't agree with our comittment to getting the sugar intake of everybody down.

Regular Contributor

Re: Overpriced - An Idea?

How lucky you are really though @Duchess because more or less everything in your county has 'space' around it. If that one is like ours (rented back from the Public Private scheme) I'm surprised that they turned down any ideas to bring in more money?
I have thought about the sweet stuff that is sold in W H Smiths - surely in a hospital it is not really a good advertisement for promoting a healthy lifestyle even with the raised prices for soft drinks?

 

Going off the track - sorry! - Do you know what happens to the extra pence that are being charged?  Does it go to the manufacturer, retailer or the Government?   It should be ploughed back into the NHS to offset the costs involved in sorting out the problems it has caused in the first place.  Last question - Boiled sweets are just as bad so will extra charges be put on them?    Answers on a postcard please!!

Trusted Contributor

Re: Overpriced - An Idea?

Dr Max in todays Daily Mail - very true :-

IMG_20180519_175737.jpg