# Profiteering at its worst Halfords versus Lidl



## viator (May 1, 2007)

Two weeks ago I bought a Fire Extinguisher at Halfords. It is a 1kg Powder ABC, brand name Guardian, it cost £29.99 Today I have a leaflet from Lidl advertisting for sale on 7th Feb(next week) the identical piece of equipment(different brand name, commonly known as badge engineering), the price at Lidl £4.99 To say I am peed off is an understatement. Check the item on the websites of Lidl and Halfords.
viator


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## chrisjrv (May 7, 2007)

Check the "use by" dates before purchasing, ( no you don't have to set fire to anything)
Regards,
Chris V


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## patman (Jan 1, 2007)

I bought a 4 kilo extinguisher from a local chandlers for £64. When I saw Lidl's prices I took it back and purchased 2x4kilo's and 2x 1kilo ones for £36. All to EN3 standard. We're just getting a bulk lot tested at £5 each or maybe a bit less.
Patman


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## GerryD (Sep 20, 2007)

It's called sods law. If you wait you will always find a cheaper price. Bet you wouldn't have felt so angry if you had needed the Halfords unit before Lidl offered theirs for sale.
I have always believed that if the product is what I am looking for and the price seem right, then it is right. If it is in the sale for half price three weeks later then I cannot complain.
We can always wait for the lower price, but if we all did that there would never be a lower price because the shops would have gone out of business due to no sales.


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## viator (May 1, 2007)

To GerryD,
Having been in business and being familar with what keeps a business going ie profit margin, there are reasonable markups and there is profiteering. £25 difference on an item under £30 is unreasonable. Lidl are also in business to make a profit. If Lidl is working on say 30 per cent markup ( average in most trades) that means Halfords is adding over 600 per cent, that is what I am getting at.
viator


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## bigfoot (May 16, 2005)

In comparison with other UK supermarkets I am led to believe that Lidl.Netto and Aldi work to margins as low as 5%.
So who's being ripped off?


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## dbh1961 (Apr 13, 2007)

But Lidl don't sell the same products all the time.

The reason for this, is they only sell whatever they happen to be able to buy cheap.

Chances are that Halfords paid their supplier more than Lidl's selling price.

Lidl will have got a really good deal, for whatever reason.

It is just Sod's law.


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## b6x (Feb 26, 2007)

dbh1961 said:


> But Lidl don't sell the same products all the time.
> 
> The reason for this, is they only sell whatever they happen to be able to buy cheap.


Exactly... Maybe they are fire damaged stock 

Like someones already said, just check how long the expiry date is. If a decent time, sounds like a bargain.


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## mikeyv (May 23, 2007)

I've just had the same promotion arrive by email, they are also doing loads of alarm things, including gas detectors, all quite cheap to my eyes.

As to the profit on auto parts, back in the 80's I had a card for Maccess cash and carry. On the receipt they printed the mark up on what you'd paid compared to rrp, it was common for the figure to be over 100%, and on consumables like filters and brake pads, you'd pay a couple of quid compared to 10 or 15 quid at a motor factors. Strangely though, you could buy the top brand oils as cheaply in Asda and co.


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## 97276 (Jan 15, 2006)

Lidl (2006)

7200 branches (europe)

80.000 staff

http://de.wikipedia.org/wiki/Lidl


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## oldenstar (Nov 9, 2006)

Back in the eighties we ran a very large village store-sold the lot, groceries, off licence, meat, veg etc..
We also had a non food section with odds and sods like paint brushes, brush cleaner etc..

Now we would aim for 15 to 25% profit if we could get it generally, though some grocery items had to be sold with as little as 5% markup.
When I bought some Brush Cleaner from the Cash & Carry I was unsure what to put it on at, but it seemed very cheap so I marked it up 100%.

When I came to check prices in a large DIY store I found that my price was still ridiculously low by comparison, probably a third of their price!!

However, to look at the other side of the coin- some of these larger or High Street stores pay over £1000 per week in rates alone, then add all the labour costs, utilities etc etc, and to be a viable business all this has to come out of profit, not turnover.
How they ever make profits I really don't know.

But then again Lidl etc also have those same costs???


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## Wizzo (Dec 3, 2007)

b6x said:


> dbh1961 said:
> 
> 
> > But Lidl don't sell the same products all the time.
> ...


Many of the items that Lidl and Aldi sell are often made specially for them with their own Brand Name. They certainly don't sell fire damaged stock. They may sometimes sell end of lines or over-production but the quality of their specials is normally pretty good and the price is usually very good.

I used to work for a large motor accessory retailer and I can tell you that the Gross Profit Margin is very high compared to grocery items. The downside is though that turnover is not as good so you need the high margins to make an adequate amount of profit to cover your overheads. It was not surprising that the large supermarkets started to sell these high margin lines.

JohnW


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## b6x (Feb 26, 2007)

Wizzo said:


> b6x said:
> 
> 
> > Exactly... Maybe they are fire damaged stock
> ...


It was just a joke John, seeing as the thread started with regards the cheap price of a fire extinguisher. Ok, it wasn't a very good one.


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## Briarose (Oct 9, 2007)

dbh1961 said:


> But Lidl don't sell the same products all the time.
> 
> The reason for this, is they only sell whatever they happen to be able to buy cheap.
> 
> ...


Thats how I feel, with our local Lidl you have to be waiting on the doorstep on the morning the offers start and even then you aren't guaranteed that they will have everything advertised (I think you can check with postcode on the website) a while ago they had small TVs a little bit like the ones sold by MFI. In MFI they are very very expensive and Lidl advertised a similiar thing at a really good price..............one of our relatives tried to buy one for a Xmas present but had no chance as here they didn't/weren't going to have any of them and even offered to travel further if one could be saved but it all proved fruitless.


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## 108777 (Dec 17, 2007)

On the Lidl theme, I see that on the same offer day they have a burglar alarm 'suitable for caravans' for 16.99. As my elderly Hymer has no alarm fitted, do you think it would be worth buying this ?

Mike


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## Rapide561 (Oct 1, 2005)

*Retailing*



bigfoot said:


> In comparison with other UK supermarkets I am led to believe that Lidl.Netto and Aldi work to margins as low as 5%.
> So who's being ripped off?


Hi, for every £1 that goes through a TESCO checkout, approx 5p is profit. This is based on sales of 24.7 billion pounds and profits in the same period of about 1.2 billion.

Halfords may have really ramped up their prices on the item you mention, but there may also be an element of "brand awareness". For example, I am happy to buy an electrical item at ASDA as it comes with a free 3 year guarantee, even though I may not have heard of the brand of the product - so effectively, I am putting my confidence in ASDA. Similarly, would I buy a TV from Aldi? I do not think I would, but that said, Aldi, Lidi, Netto and Penny Market are huge players in their "own" countries.

Russell


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## Wizzo (Dec 3, 2007)

Briarose said:


> ... a while ago they had small TVs a little bit like the ones sold by MFI. In MFI they are very very expensive and Lidl advertised a similiar thing at a really good price...............


Yes you do have to be a bit of an early bird. I've found that some Lidl / Aldi seem to have better stock than others but maybe it's down to being not so busy.

We bought one of those under-cupboard TV's for the van and it's quite impressive.

b6x. It was a good joke, I just wasn't awake when I read it!

JohnW


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## oldun (Nov 10, 2005)

Its not really fair to compare Halfords with Lidl.

Halfords stock a wide range of products that are nearly always available or available to order. This involves a large amount of stock and large storage depots.

Lidl buy up end of ranges products whenever available and once the very few available are gone you have about 0.01% chance that they will get them again in the near future.

Its a little bit like comparing prices up market car boot sale with a fully established company. The established company will always be much dearer.

Having said that I am no fan of Halfords.


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## bigfoot (May 16, 2005)

Aldi's car radios have been on the shelves for a number of times usually twice a year. And every time they are better featured and cheaper. The current set I have has usb,card slot and ext audio i/p and a remote control(mmmRadio in bed) as well as 3 waveband and a CD player that plays mp3s. I bought it just after christmas and 2 days ago they still had some in. I have used Lidls and Aldi radios in all my vehicle and I bought a Netto mini HiFi for £30 for the exhibition continious play no probs and that also has a usb slot.


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## oldun (Nov 10, 2005)

bigfoot said:


> Aldi's car radios have been on the shelves for a number of times usually twice a year. And every time they are better featured and cheaper. The current set I have has usb,card slot and ext audio i/p and a remote control(mmmRadio in bed) as well as 3 waveband and a CD player that plays mp3s. I bought it just after christmas and 2 days ago they still had some in. I have used Lidls and Aldi radios in all my vehicle and I bought a Netto mini HiFi for £30 for the exhibition continious play no probs and that also has a usb slot.


I agree with everything yo say about price and quality my point was simply that the two stores have different policies on stock.

Lidl only stock a smallish range of goods covering everything from food to TV, clothes etc whereas Halfords have a much wider and more regular range of goods covering a much more selective range.

If you want price and value and its in stock get it at Lidl or somewhere similar. If you need a specific item now you will probably have to go to Halfords or somewhere similar.

I personally think that Halfords are over priced and not always the best quality but in desperation I will go to Halfords


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## 2kias (Sep 18, 2006)

Only been in one Lidl. What a dump with a load of c--p.
Each to his own.


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## kevwright (Oct 13, 2007)

The Lidl offer is almost certainly NOT making 30%, it is probably a loss leader to get people in store to buy other things.

£30 for such an important item does not sound expensive to me.

Kev


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## 102731 (Jan 30, 2007)

djchapple said:


> Lidl buy up end of ranges products whenever available and once the very few available are gone you have about 0.01% chance that they will get them again in the near future.
> 
> Its a little bit like comparing prices up market car boot sale with a fully established company. The established company will always be much dearer.
> 
> .


What's the basis for these comments? Have you worked for Lidl?
Lidl are a large discount operation based in Germany and trading widely across Europe. To suggest, sneeringly, that they operate so competitively only by buying up Ends of ranges is unfounded and unfair. Note that 99% of the goods they sell are own brand and produced specifically for them. You can't do this if you are a tupenny hapenny company. Their savings come from high volume and low overheads.

The same comments apply to Aldi. Their computer offerings get good ratings in the computer press and sell out quickly because of amazing spec for the price.

Halfords on the other hand, like Currys and Comet, headline a few low price products which are often unavailable elsewhere (so you can't compare prices) whilst the majority of their stock is at full recommended price.

If you look at Tesco and the like you will find, similarly, that most of their offerings are at full price. It is also the case that they either raise a price over a few weeks then bring it back to the original price and call it a special offer or they will raise the price of other, less price sensitive products to cover the reductions on other high profile lines.


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## oldun (Nov 10, 2005)

.[/quote]
What's the basis for these comments? Have you worked for Lidl?
Lidl are a large discount operation based in Germany and trading widely across Europe. To suggest, sneeringly, that they operate so competitively only by buying up Ends of ranges is unfounded and unfair. Note that 99% of the goods they sell are own brand and produced specifically for them. You can't do this if you are a tupenny hapenny company. Their savings come from high volume and low overheads.

The same comments apply to Aldi. Their computer offerings get good ratings in the computer press and sell out quickly because of amazing spec for the price.

[/quote]

I am sorry that I touches such a raw nerve you must have just had a bad row with your other half or someone at work.

I did not intend or actually make any sneering comments about Lidl, it's all in your fertive imagination.

I am fully in agreement with you on nearly all points but they do sell many items that are basically one off and will not be available again soon. They balso have very limited supplies of the offers they advertise so actively.

As I said above if you want good value items go to somewhere like Lidl but be prepared for these items to be sold out and no longer available.

If you need a specific item then go to somewhere like Halfords where you will pay top price but you will have a much better chance of getting the item in a reasonable time scan.

Please explain to me how this is a sneering comment - its just a very well thought out assessment of the situation.

It's you who has made a sneering and childish comment.

I don't expect an apology from someone as immature as you.


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## 107990 (Oct 30, 2007)

What you are discussing is called globalisation, the free market, capitalism. Ask yourself, would i want to make that fire extinguisher, ship it round the world, sell it to a company who will then distribute it across there stores nationwide and then see it sold for £4.99p. I would suggest to you that nobody made much profit out of it. You were quite free not to buy one at Halfords, i guess they didn't force your arm up your back. You could always buy one of Lidl's to go with your one from Halfords and then you only paid an average of £15.


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## G2EWS (May 1, 2006)

The fire extinguisher side of this is currently a hot topic for me!

We have a one man band who comes and checks our extinguishers and issues a certificate every year. Last year we had to use a 4kg powder extinguisher on a fire in a business in our estate.

http://www.gazetteandherald.co.uk/s...8123.0.workshop_completely_gutted_by_fire.php

Daniel (my Son) became a hero because he ran over and climbed into the loft where the fire began and used our extinguisher to calm the fire down before the brigade arrived.

The one man band replaced the extinguisher whilst I was out and left a bill for £90! I called and explained that this was taking the michael and he explained that it was a very expensive top of the shop Thomas Glover extinguisher. So I did a bit of research and found this:

http://www.budget-fire.co.uk/powder-extinguishers/

The very same one he was trying to rob me of £90 for £23.50! Now I am all for looking after local small businesses and would have been OK paying £40 - 50 but £90 is just being greedy!

Check out the site there are some bargains to be had if you want an extinguisher for home or the MH.

Regards

Chris


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## 107990 (Oct 30, 2007)

But you called him and asked him to come to you, right ?. How much does it cost to get a plumber just to come to your house ?.


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## G2EWS (May 1, 2006)

Hi DollarYen,

Err no I did not call him, otherwise I would have said. He just turns up and carries out a check of our fire extinguishers and issues a certificate for which I am happy to pay him.

Regards

Chris


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## 107990 (Oct 30, 2007)

Fair enough, i guessed you had called him out to replace a discharged bit of kit. I still woundn't of thought it that unreasonable to have someone visit my premises and issue a fire safety certificate (putting your reputation on the line and being backed by insurance presumably). I have seem some bills from companies like Chubb and they really would bring a tear to your eye.


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## 102731 (Jan 30, 2007)

[/quote]

I don't expect an apology from someone as immature as you.[/quote]

And here it is, no apology from me at 61 going on 6.


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## viator (May 1, 2007)

To DollarYen,
Having read your post of 7pm yesterday, nobody twisted my arm up my back, I find that remark disrespectful. I started a thread which brought responsible contributions from people qualified to write about such things, ex business people and importantly ex-firemen.
viator


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## 107990 (Oct 30, 2007)

What are you so angry about ?. All i'm saying is that you bought it from Halfords of your own free will. Fireman might be experts on extinguishers but your argument is about economics, and i think i probably know as much as any of your respondents on that subject. Lidl sell a can of coke for 20p and the motorway services sell one for about £1.50, you are quite free to buy or decline either. Whats your problem.


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## oldun (Nov 10, 2005)

This is turning out to be a strange thread.

Normally the replies can be long or short, helpful or unhelpful, correct or incorrect but generally they are all given in good faith.

The along comes someone who must interject verbal abuse....why is this kind of approach necessary.

If you don't like a response then please put forward your counter argument politely.

In what way does abuse enhance your position?

I have not worked for Lidl, Aldi Halfords or any other retail outlet but I have shopped in many and formed an opinion.

My opinion may be right or wrong but I am entitled to offer it in any post here providing it does not break any of the Forum rules or the law.

Some of us have yet to learn that growing old is mandatory, becoming wise is optional.


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## G2EWS (May 1, 2006)

djchapple said:


> This is turning out to be a strange thread.
> 
> Normally the replies can be long or short, helpful or unhelpful, correct or incorrect but generally they are all given in good faith.
> 
> ...


Hear hear!

Chris


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