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Supermarket busted for ... selling affordable milk

Posted by on Jan. 27, 2013 at 1:23 PM
  • 29 Replies
1 mom liked this


4:42 AM 01/26/2013

BY MICHAEL BASTASCH

Louisiana state regulators recently cracked down on a supermarket chain’s weekly promotional deal because it was selling milk too cheaply — which violates state law.

The upscale Fresh Markets was selling gallons of milk for $2.99 as part of a weekly promotional deal. Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product.

“Because milk is a commodity product with regulated costs that are subject to change, at the current cost, due to Louisiana state law, we are unable to honor the $2.99 Tuesday deal for (Fresh Market) milk,” according to a statement from Drewry Sackett of BRAVE Public Relations, who represents Fresh Market. “Because the cost of milk fluctuates, it is possible that we will be able to offer the $2.99 deal on milk again in the future.”

“They can sell it six percent over cost all day long. It’s when they sell it below cost that it becomes a problem,” State Agriculture and Forestry Commissioner Mike Strain told The Advocate.

After getting a complaint about Fresh Market’s promotional deal, Strain’s office sent an auditor to a French Markets store.

At least one Fresh Market shopper was outraged when he found that the state government had intervened to control the store’s milk prices.

“Should we do the same thing with bread? Should we do the same thing with soft drinks?” asked Lafayette stockbroker Kenneth Daigle. “If retailers want to take a loss, so be it.”


http://theadvocate.com/news/4992757-123/state-stops-sale-of-cheap

by on Jan. 27, 2013 at 1:23 PM
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Replies (1-10):
SallyMJ
by Ruby Member on Jan. 27, 2013 at 1:45 PM
6 moms liked this

An illustration of, as Reagan said, the ten scariest words in the English language:

"Hi - I'm with the government, and I'm here to help."

Mommy_of_Riley
by Just Jess on Jan. 27, 2013 at 2:03 PM
6 moms liked this
Let them set their own prices...
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SallyMJ
by Ruby Member on Jan. 27, 2013 at 2:09 PM

Agreed. Geez, get out of our faces!

Quoting Mommy_of_Riley:

Let them set their own prices...



Erinelizz
by Bronze Member on Jan. 27, 2013 at 2:54 PM
1 mom liked this
"Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product."

That's messed up, Louisiana. Stores should be able to take a loss if they want to...it's a marketing strategy. I wonder if other states have similar laws for retailers? The only law I'm aware of here in NY is a law that prevents retailers from price gouging.
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SweetChild63
by Member on Jan. 27, 2013 at 2:56 PM

I doubt the validity of this report. Loss leader is a long-standing marketing practice across the nation. IF somehow this were true... just remember Louisiana is a RED state.

Raintree
by Silver Member on Jan. 27, 2013 at 2:57 PM

An illustration of industry creating legislation.

Quoting SallyMJ:

An illustration of, as Reagan said, the ten scariest words in the English language:

"Hi - I'm with the government, and I'm here to help."


SallyMJ
by Ruby Member on Jan. 27, 2013 at 3:07 PM

So let's end it already.

Oops, government doesn't want to. They are definitely complicit.

Quoting Raintree:

An illustration of industry creating legislation.

Quoting SallyMJ:

An illustration of, as Reagan said, the ten scariest words in the English language:

"Hi - I'm with the government, and I'm here to help."




SallyMJ
by Ruby Member on Jan. 27, 2013 at 3:08 PM

I think the elected leaders of the good people of Louisiana need to take an economics class.

Quoting Erinelizz:

"Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product."

That's messed up, Louisiana. Stores should be able to take a loss if they want to...it's a marketing strategy. I wonder if other states have similar laws for retailers? The only law I'm aware of here in NY is a law that prevents retailers from price gouging.



Fields456
by Bronze Member on Jan. 27, 2013 at 3:10 PM
1 mom liked this
That's stupid
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SallyMJ
by Ruby Member on Jan. 27, 2013 at 3:16 PM
3 moms liked this

Read it and weep. Right from the local newspaper.

Just because a state is currently governed by conservatives, doesn't mean there aren't some boneheaded laws on the books passed by either of the parties in the past.

http://theadvocate.com/news/4992757-123/state-stops-sale-of-cheap

Quoting SweetChild63:

I doubt the validity of this report. Loss leader is a long-standing marketing practice across the nation. IF somehow this were true... just remember Louisiana is a RED state.



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