Thursday, 29 March 2012

A Duty to Explain Duty.

I asked to speak to a manager in the supermarket today, to enquire as to why their tobacco and liquor prices had already gone up, given that it was only a week since the duty had been increased in the Budget.

The manager wanted no trouble. He took out his purse right away.

Oh no, that’s a line from Albert and the Lion...

Erm... what the manager actually said was that they have a high turnover of tobacco and liquor, and that the prices had gone up when the new stock had arrived last Sunday – the new stock having the higher duty applied to it. Fine, except he then admitted that all the stock already in situ was also being sold at the higher price ‘because it would be impossible to separate the new stock from the old.’

That argument doesn’t really ring true, does it, since all they had to do was hold the new stock back until the old stuff was gone. So what this means is that Sainsbury’s are making extra profit by selling old stock at an unjustifiably inflated price – which isn’t illegal, but it’s certainly unethical.

And this is the kind of thing that most people don’t realise is going on, because most people don’t understand how duty works and nobody explains it to them.

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