The price of the same bottle of oil, carton of milk, identical kilo of oranges or frozen hake varies considerably depending on the neighborhood, town or establishment where you buy. The recognized PVP varies depending on two factors: the commercial strategy of the distributor and the costs applied to the product.
Example: buying the same product in a shopping center such as l’Illa Diagonal or in a specialized grocery store on Rambla Catalunya or Sarrià has a higher price than doing it in a neighborhood supermarket, in a town or even in a 24-hour convenience store . Even in the same supermarket, the price varies depending on whether it is located on the coast or inland. affect the price the square meter of rent, the distribution process via intermediaries, marketing and the salary of the employees. Also, obviously, the profit margin -very narrow compared to other sectors- that you want to charge because the business owner has every right in the world to want to earn some money.
It is enough to look back to realize the growing fierce competition that has existed in the market for the sale of products of all kinds: from food to personal hygiene. Before, I remember from the eighties, even in medium-sized towns you could barely go shopping in three places. The offer was also very limited. Even bakeries of all colors and designs have grown like mushrooms after the rain. All kinds of desires have been generated. Like it or not: it is the free market. Today, to buy milk or any basic necessity product, you have to have done a doctoral thesis.
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Take the test and see how many establishments of almost everything there are less than ten minutes walk from your home. If you choose to go by car, the list multiplies. The large distribution chains lead most of the national and regional rankings of companies with the highest turnover in Spain. One of them -present in all corners of the Peninsula- is one of the great business successes of this century. Your success? Offer lower prices than the competition. The vast majority of chains have lagged behind.
Eliminate and/or reduce VAT on basic products -What is basic to all this?- How the Government has just done to fight against inflation is a measure that will serve no purpose. Yes, very good propaganda will in pre-election times, but it is the parrot’s chocolate, like giving checks that harm those who earn one euro more than the limit of the beneficiaries or continue subsidizing. History has shown that the more checks and caps curtail economic life, the worse. Inflation -in Spain it is lower than in other neighboring countries due to less energy dependence as it is a less industrialized country- will return to a desirable level of around 2% thanks to two main factors: the resolution of the energy crisis as a result of of the war and due to the effects of the rise in rates that will make the price of money more expensive and will narrow credit. If, in addition, China sneezes and world demand contracts, prices will fall Or is it that no one remembers the deflation caused by the pandemic anymore?And the competition? Let it continue, in all areas. That distributors and sellers wake up, that they attract consumers, at the best possible price and quality. This is the best antidote against crises of all colors. Creative competitiveness. The rest? You want to tangle