Grocery Guru Ep 6: It's CPI Time!

Join Andrew Grant and Darren A. Smith in the sixth episode of Grocery Guru: It's CPI Time!

You Can Read the Full CPI Time! Episode Transcript Below:

Darren A. Smith:

We're in week six. Last week, we spoke about the demise of the deli counter and how it was a bit like a turkey at Christmas. Remember?

Andrew Grant:

Remind me of the turkey at Christmas analogy.

It's CPI Time!

 

Darren A. Smith:

I was trying to say that a counter is a bit... You don't want to get rid of it. You don't want to get rid of turkeys at Christmas. No one really likes how they taste, but they are Christmas.

Andrew Grant:

But given what this stage has done, I'd say they are stuffed.

Darren A. Smith:

Yeah. All right. What are we talking about this week? In week six.

Andrew Grant:

Well, I know you like a good riddle at the start of these conversations we have, get you and get your brain matter going during the lockdown. So here, here are our test top three things guaranteed to annoy a buyer, hang on a second now. I'll give you the first two and you've got to guess the third.

Darren A. Smith:

Right? Go.

Andrew Grant:

No. Top three things not to say to your buyer. If you're an account manager if you don't want to ruin their day. One, I'm having an affair with your nearest and dearest.

Darren A. Smith:

Fair.

Andrew Grant:

Two. I have just run over your favourite pet cat or dog. Now, obviously, depending on the buyer, those first two could be interchangeable.

Darren A. Smith:

Yeah.

Andrew Grant:

But what was the third one guaranteed to put your buyer into a bad mood?

Darren A. Smith:

I have, we've just managed to not deliver the stock that you absolutely need to do for Easter Christmas or a big promotion.

Andrew Grant:

Yeah. A bump in the road. No, the, the number three guaranteed to ruin that day is we're putting through a cost price increase.

Darren A. Smith:

Yes.

Andrew Grant:

As I said, other than you running over their favourite Pet, or having an affair with their nearest and dearest, it's probably the worst thing you can say to a buyer.

Darren A. Smith:

So what about when suppliers used to say, but if you put the prices up, You'll make more money?

Darren A. Smith:

Yeah but. Yeah. I think you see with the buyer. A Couple of things is one, will the market, particularly the current market take a retail price increase. Everybody watches everybody, but it's actually a lot more personal than that. Cause you've been a buyer. I've been a buyer. You know, you've got to sit in that trading room on a Monday morning and the boss goes through all the figures and everybody gets a bit of a beating because the figures aren't good enough. And then he, or she turns to everybody and goes, right? What news we got guys and ladies and everybody else has got fantastic news. Like, Oh my new product, number one, I've just won a prize for whatever. And then Darren has to put his hand up and go, oh, I've just accepted a 10% cost price increase from Fred blogs, grocery company.

Darren A. Smith:

It's like a hit on my bottom line of X hundred thousand. So the next question comes from He or She manager, how the hell are you going to get that back? Well, you've just spent a week negotiating and trying to figure out how to get what was 18% down to 9%. And now you've got to figure out how to close the gap?

Andrew Grant:

Yeah. Normally it just ends up not even with a challenge like that. It's just like you map it.

Darren A. Smith:

Or worse. Yes.

Andrew Grant:

Yeah. Now its the rest of your 8 weeks ruined. So anyway, so come to the point, cost price increases, I think are obviously inevitable. Particularly after this year where so many suppliers have had to spend enormous amounts of money, during lockdown to either be COVID safe or to get extra deliveries out there, et cetera, et cetera.

Andrew Grant:

So costs have been rising and we have the big B word happening in January. Still,