paladin wrote:Captain Brittles wrote:I know they screw the dairy farmers
It's not so much that they 'screw' all the suppliers by driving the price down, it's more to do with the timescale of payments .......some suppliers can go three months or more between payments from the big stores.
Ever tried getting paid quarterly? It's not easy.
i'm afraid thats not entirely true, they shaft producers and suppliers rotten, not just with quarterly payments, but by screwing down the prices mid contract, and if the suppliers complain, they get delisted from the supermarkets books.
they also get charged for advertising for the supermrkets, where their products are placed in the supermarkets, and even get charged just to be able to supply the supermarkets!
one dairy producer in the uk pays £1 million a year just for the priviledge.
in a classic case by tesco several years ago, they sent a letter to all their suppliers, saying that due to the amazing success of thei advertising for chicken products, all their supplies had to cough up £2000 to pay for their share in the advertising.
one suppler wrote back saying i dont supply chicken, i sell you fish. he was sent a letter back saying they would take the money from his monthly account any way, and once he complained he was delisted, 6 months later a company with £2 million turn over a year went bust cos he couldnt sell enough of his produce after being delisted by tescos.
i urge you all to read "not on the label", its a real eye opener to the shady world of the mutiples.
its available on amazon for 3.99 just now.
http://tinyurl.com/alrtd