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Why do manufacturers print this on multipack items.? Who cares if it was once in a multipack. I mean even if the multipack is cheaper wholesale, again who cares? If I buy anything in bulk I would expect it to be cheaper and then if I sell it individually at a profit that’s the whole point surely. 🤷♂️
Because the manufacturer wants all the markup
How so? Six cans at a certain price is six cans at a certain price, regardless of what’s printed on the wrapper. If a shop wants to sell all six at once then they price it less than six individual cans. If they want to break up a multipack and sell them individually why does the manufacturer care?
If they want to break up a multipack and sell them individually why does the manufacturer care?
I don't have exact prices in front of me but suppose a can of coke reatols for 80p in a shop and a 24 pack is £9.60
Assuming Each can costs 30 p to make and the profit is split fiddy: fiddy between manufacturer and retailer..
So Coke makes 25p on each solo can and the shop also makes 25p.
On the 24 pack Coke makes 5 pence and the shop makes 5 pence.
But if the shop just buys 24 packs and then splits some to sell individually then they make 45p profit per can and Coke only make 5p.
Coke don't like that so they print annoying stuff on them to try to prevent it.
Simples
Still so what?
I’m looking at a can of 7 up with all the ingredients listed and it says only to be sold etc..and it’s the same size as a normal can.
1) need nutrition, contact details, etc etc printed on every unit of sale
2) need a bar code on every unit of sale
Assuming Each can costs 30 p to make and the profit is split fidfy: fidfy between manufacturer and retailer...
Manufacturer (bottler) and retailer don't split the profit.
Cos…if its Flakes, Whispas or Twirls they’re smaller. Schralpers! I do love dipping Flakes in a nice single malt🤗
Posted 14 minutes ago
What?
Sometimes the ingredients aren’t listed on the individual items, only the multipack outer packaging.
Also multipacks individual sizes can be smaller than individually sold items.
Irrelevant. The manufacturers are quite capable of printing ingredients lists on their packaging, they just don't want to as it puts leverage on the shop not to split.
Oceanskipper
It took me a while to do my arithmetic. Check my updated post further up.
Manufacturer (bottler) and retailer don’t split the profit.
Y' what. So which of them is just doing it for fun/ humanitarian reasons?
Still so what?
The unit (each can) sale price is lower in a multipack to both retailer (we have a cash and carry card, so see the pricing there but not what major retailers negotiate) and customer, to prevent retailers eating (drinking) into profit margins by selling multipack cans individually at a lower selling point they (try to) prevent the practice with the retailer.
I do love dipping Flakes in a nice single malt🤗
There are some wrong uns’ on here - but this!!! 😱😱😱
Just, just………
So which of them is just doing it for fun/ humanitarian reasons?
Neither. They're not sharing any profit. The bottler sells the product to the retailer (or the cash n carry, distributor etc) and keeps whatever profit it made. The retailer sells it to the consumer and keeps whatever profit it made on that sale. No splitting.
Whisky and chocolate is a good match imo.
Champagne with fish and chips is good too.
Still why? If Coke sell 24 cans for £9.60 why on earth does it make a difference if the 24 cans are wrapped in extra packaging or not?
Neither. They’re not sharing any profit. The bottler sells the product to the retailer (or the cash n carry, distributor etc) and keeps whatever profit it made. The retailer sells it to the consumer and keeps whatever profit it made on that sale. No splitting.
**** me. Ok, I'll phrase it differently if you wish...
Assuming Each can costs 30 p to make and the price at which the manufacturer sells to the retailer just happens to be at the exact point that they both make exactly the same profit as each other. This assumption is made to make the arithmetic easier to understand
Happy ?
🙄
Still why? If Coke sell 24 cans for £9.60 why on earth does it make a difference if the 24 cans are wrapped in extra packaging or not?
I've already explained this. It doesn't matter to the consumer. It matters to the retailer in a positive way. It matters to the manufacturer in a negative way. Therefore the manufacturer tries to prevent it.
Which bit of that is hard to understand?
Stop asking everybody Why Oceanskipper.
Outside of the industry, we just don't know.
It's probably simply 'Because they can' but, if you want the answer, try asking a manufacturer directly 😉
Would be interesting to see the convoluted marketing schpeel they come out with 😀
Makes no sense.
Retailer to wholesaler - I'd like those 24 cans of coke please.
Wholesaler - That'll be £24 please
Retailer - What about those one wrapped in plastic/cardboard
Wholesaler - those are £12.
Retailer - Err why? I still want 24 of the other ones so why are these cheaper?
A corner shop near us used to sell bags of crisps individually marked "only to be sold as part of a multipack"
The reason is thus:
- You can go to the cash and carry and buy a box of crisps containing 100 individual packs and it costs £10
- The same cash and carry sells a box of 20 multipacks each containing 5 bags, this costs £8
- Now both boxes contain 100 bags of the same crisps, however the manufacturer makes more money on the individual packs.
- They still make a profit on the multipacks, but they don't want the shop splitting them, they want the shops to buy the box of individuals.
Have you been at the Rum again and realised there was a multi buy option you missed out on
This isn’t a thing in Spain. You can split packs of drinks in Mercadona super markets
Now both boxes contain 100 bags of the same crisps, however the manufacturer makes more money on the individual packs.<br />They still make a profit on the multipacks, but they don’t want the shop splitting them.
Still why! FFS! 😂
If the manufacturer doesn't want to sell multipacks because they make less money on them why do they make them in the first place?
It doesn't need to be taken litteraly. Retailers are quite at liberty to ignore it and sell the stuff individually providing they comply with the legal constraints for ingredients etc...
In fact I think it should be illegal to print that restriction. I almost see it as an anti competitive practice.
Anarchy that’s why. It’s a small step from splitting a multi pack to complete and utter break down of society
It’s a small step from splitting a multi pack to complete and utter break down of society
Clearly!
Quiet night in the skipper household or a really full pub chat?
Still why! FFS!
Makes no sense.
That's because you're not actually putting any effort into understanding it. 3 different people have laid it out very clearly and yet.....
If the manufacturer doesn’t want to sell multipacks because they make less money on them why do they make them in the first place?
They do want to sell them because that's what some people want to buy. They also want to sell singles, because that's what other people want to buy.
In each case they want to maximise the amount of profit they make. But if the retailer splits the multipacks then the manufacturer loses some profit.
It's already been said but I agree.
It's exaclty the same produce, the manufacurer/distributor will sell multi-packs in bulk a teeny bit cheaper to a retailer so they don't have to bother with individual cans/packets.
That's why a single can of coke might cost over a quid at point of retail, but a six-pack might work out at 10% cheaper or whatever.
Economy of scale.
It's exactly why I don't get too upset if I go to a corner shop and buy 1 can of coke and it says 'multipack only'.
I don't actually drink coke, it's just an example.
Heres a good one...
Kind of a reverse on the above... I refuse to have store loyalty cards, that's a whole subject in itself.
My mate does have a tesco club card, so he sent me a picture of his QR code, which I scan at checkout... I "saved" over a tenner today by doing that. He gets extra points or whatever.
Am I comitting financial fraud?
It’s exaclty the same produce, the manufacurer/distributor will sell multi-packs in bulk a teeny bit cheaper to a retailer so they don’t have to bother with individual cans/packets.
Individual cans arrive at wholesalers for selling on in packs of 24, you only usually get to "individual cans" just prior to going onto the shelf IME
That’s because you’re not actually putting any effort into understanding it. 3 different people have laid it out very clearly and yet…
No they haven't! All you have said is that the manufacturer sells multipacks cheaper because, well, they are multipacks. I realise that. Economies of scale etc. So why does the manufacturer give two hoots if I then sell the 24 cans I bought in bulk, as 24 individual cans rather than in the 24 pack. No one has explained that. And if you are so clever then smartypants with a brain not made of sponge, tell me why they don't do it with socks, cans of deodorant, *insert long list of other items that are available in multipacks but do not have rules about sale printed on them
Quiet night in the skipper household or a really full pub chat?
First option.. 🙄😂
tell me why they don’t do it with socks
😆
Possibly similar reasoning to the buy 2 for £x type deals in the supermarket. A way for the manufacturer or retailer to get consumers to buy a bit more than they actually need/want. Driving up consumption. Having multipack only allows manufacturers to retain this in retail more closely.
Now that's a better explanation/more plausible reason.
Why?
@duncallum and @muffin-man. Once upon a time, in, you know, the quality days; you could use a snapped in half Cadburys Flake like a straw. And actually suck up a nice smooth single malt through the folds in the chocolate. Not so much now. You have to add a little Schweppes Lemonade (the full fat one) to the malt to help it cling to the outside of the folds in the flake. Again, once upon a time; because Twirls had an outside coating of chocolate and the inside folds were more "quality", you could, by biting off both ends, suck up the single malt that way. I have spent an inordinate amount of time researching this, so trust me.🥰
If you take it back to warehouse/import level, they'd much rather sell 'a product' in bulk by the pallet, or many pallets.
If someone wants to buy 1 pallet of mixed stock, that has to be broken down from seperate pallets, and then picked and packed as a seperate process, for want of a better word. That costs money in terms of labour.
That's why one can of coke costs a lot more more than 26 tonnes of coke, per Kg/ml etc.
Yes yes I know all that. But my question was why does the manufacturer then subsequently insist I sell the 1000 I bought on a pallet, in 6's or 12's or whatever by packaging them in multiples and printing rules on them..?
Most plausible answer IMO is probably simply forcing people to buy more product. Having sour grapes about how much money the retailer makes on it doesn't make sense to me but obviously I am just a 3 year old sponge so... (prize for most stupid insult goes to.... "thegeneralist" yay!) 🤷♂️🙄
my guess is it’s the brands trying to protect their distributors and discourage smaller shops/pubs/restaurants etc from just sourcing product from supermarkets when there’s deals on (which may be loss-leaders) rather than using wholesalers.
Ah - another good possibility.
Make less money per can
But sell more cans at lower mark up = same profit.
Put smaller cans in multiple packs and fool some customers , sometimes.
Get more 14yr kids hooked on sugar by selling 12 cans , so they buy 1 can a day for the next 23 years.
Shopkeeper/ wholesaler has different SKU to price , store , distribute, sellso needs a bulk discount
It's about controlling the marketplace for their products. For example, the recipie for coca-cola varies according to the ingredients which are available in each country (at a profitable price). So, coca-cola will not like Indian coke being sold in Malaysia, let''s say...
With pricing alone, it's a way to discriminate against consumers who have different buying power.
A corner shop outside a school may only stock single cans - that's what kids will/can buy + multipacks take up too much space for the given profit.
Wheras a big ASDA will do 24packs at 10p less than Tesco so they can claim to be 'cheaper on brands'...
In the cash and carry, you buy 24pks of coke marked with an RRP on them for less than those without. Coke assumes the retailer will sell those non-price marked versions at a higher price.
The rationale is not mathematical, it's (socio)economic.
That’s all well and good, economics/market forces etc etc but doesn’t explain why they prevent you from splitting a multipack - best reasons are from zilog, singletrack and richpenny. If I sell 100 cans a day why do they care how they were sold. They’ve already agreed their own margin and sold to distribution at a certain price point. Much better that they try and help me sell 150 rather than get pissed off about how much margin I managed to squeeze out of my customers on the 100 I did sell.
It could be to keep shopkeepers/the supply chain under control. Shopkeepers won't like being undercut, if you split multipacks.
So, if everyone buys multipacks + splits them, it could force the price down - too much supply. That might affect their profits (nobody buying the more profitable single cans anymore).
Also, they might tie-in a deal with other products. So the cash n carry will say buy 20 cases of coke and get a free bottle of whiskey.
Essentially, you're right, though. It doesn't matter.
Yeah it must be to do with protecting prices and distribution channels as well as forcing people to buy more than they want etc.
This is a fascinating insight into how some people think. Present them with a rational explanation and... nope.
Anyway, my car journey up the M6 traffic jam has now ended, so I'll leave you to your ruminations.
Quite a lot of the time, it's cheaper for shopkeepers to buy stuff in supermarkets than the cash and carry. Most of our local kebab shops go to Lidl/Aldi for chips and burger buns etc.
you’re right, it is fascinating. STW in a nutshell. Invent an argument & champion it for all you’re worth, irregardless of there being any factual basis let alone evidence 😀This is a fascinating insight into how some people think. Present them with a rational explanation and… nope.
Thing is general, your explanation wasn’t an answer to the question, just a statement about economics. You then proceeded to repeat it over and over and then accuse me of being stupid for not understanding how your explanation was the answer to a question you clearly didn’t understand yourself! Fascinating as you say, or just belligerent. Thanks for your input, some of the other answers are much better than yours though and far less rude. 😎👍
Anyway, my car journey up the M6 traffic jam has now ended, so I’ll leave you to your ruminations
Oh and texting/posting on STW while driving, big no no mate, even in a traffic jam.
Assuming Each can costs 30 p to make and the price at which the manufacturer sells to the retailer just happens to be at the exact point that they both make exactly the same profit as each other. This assumption is made to make the arithmetic easier to understand
This is an unhelpful assumption because it obscures the very reason bottlers print the "no splitting rule" on the can: the bottler's intention to capture as much of the value in production and sale, including at the expense of the retailer.
Short answer it's about maximising profit for the manufacturer in each market segment.
Single cans are one segment, multipacks are another. Different segments can support different pricing per can, you start splitting multipacks you are messing with their bottom line.
I believe their car journey involved more than one unit, helps save money.
I do love dipping Flakes in a nice single malt🤗
Sir should borrow a .45 Webley for your next single malt, you know what you should do!
You are considering multipacks and singles as the same product.
They aren't. The can contains the same product but how and why people buy singles and multis is different.
People buy multipacks from supermarkets aren't going to shell out single prices for 24cans so the supermarkets want something they can sell. And because they can sell lots of them the profit is acceptable. They also want to sell singles with their meal deals and individually that's a different market, they want to get the profit they can from them but the manufacturer won't see that profit. If you think of Tesco's and all the other biggies combined that's a huge loss of guaranteed income. I imagine that kind of thing is even contractually agreed with agreed pricing etc.
Then you have the little guys, buying their stock from a third party... Never going to sell multipacks, maybe the odd 6pack but not in great numbers. They'll fire out singles like no one's business though! The manufacturer wants them to do that but undercutting the prices of they huge purchasers is going to go down like a ice cold can of coke on a hot day. They don't have a contract with the seller so to attempt to control it they take the ingredients off, and make it illegal for the shop to sell it, they stick a label on it so people can see that the coke seller is a scumbag (bit rich from cokacola).
Manufacturer is trying to control a non contracted agreement. I believe the seller could quite legally add a label the reinstates all the missing information and sell them legally in the same way imports can be relabelled. Or just wing it but the legal issue there is again not to do with the manufacturer but a breach of selling regulations.
Or something.
****ing hell I want a can of coke now.
Oh and texting/posting on STW while driving, big no no mate, even in a traffic jam.
Irrelevant.
The answer is very simple, consumers spend more on your product and reinforces brand loyalty. The cost of the product itself is only a small part of the overall operational cost of a business so they’d rather you bought 20 for £10 than £1 each.
You have to add a little Schweppes Lemonade (the full fat one) to the malt
You animal. The chocolate was bad enough but lemonade in malt?
Oh and texting/posting on STW while driving, big no no mate, even in a traffic jam.
I sent Facebook messages the other day whilst doing 70mph in the middle lane of the M65.
I was sat in the passenger seat, mind.
I was sat in the passenger seat, mind.
Cougar nails it.
As did piemonster a while back:
I believe their car journey involved more than one unit, helps save money.
😄
Why have I read this entire thread? I agree the not to be sold separately thing is daft and guess it boils down to because we say so from the manufacturer.
surely that is even more dangerous & illegal? How did you reach the pedals??I was sat in the passenger seat, mind.
If the manufacturer doesn’t want to sell multipacks because they make less money on them why do they make them in the first place?
It's all about core product lines.
To put it into a bike shop perspective using multipacks of cans:
The singles are akin to your tyres, inner tubes and cables. They sell well and consistently as people always need them, they are the products that underline your costs of running. The size that is bought when you need a drink there and then.
The 6/8 packs are more like your accessories like clothing and shoes. You sell less of them but they're still a consistent seller and help bump up your cash flow. The size that the forward planners buy to keep them going for the week or until the next shop day.
The 24 packs are your bikes. They don't sell as much as the smaller packs but when the weather plays nice they go quickly and easily. Essential to have available as they allow cross-sales to happen. Grab a 24 pack for a party and you'll also grab the snacks to go with them, buy a bike and you'll most likely need a few accessories to go with the new ride.
A good shop will always have most options available so that they capture the greatest amount of custom. Where you can play the system is if you're a burger van for example you can buy the 24 packs wholesale then split them to maximize profit margin, like a shop with just essential spares at a trail centre. The manufacturers mark the multipacks so that this is obvious to them and the customer, sort of a shaming technique. They can also use it to cut off supply to a shop that doesn't follow the rules.
There's also the 'two ways to make money' thing too: either sell small amounts at a high price and profit margin or sell large amounts at a lower price and profit margin. Both work but in different ways and depend upon your target market. By having all options available they make even more money as they capture more custom and importantly market share.
Multi packs come in cases of 4x6 (24cans at £11.59+vat) or boxes of 3x10cans (18.25+vat) so a little cheaper wholesale than the equivalent case of 24 (£13.09+vat) single cans.
Now RRP on a single non price marked can is £1.30, but the margins and rrps on multipacks are significantly smaller per can.
So its a way of stopping a few things..
Retailers selling the brand too cheap by passing savings on to the consumer - essentially you should 'never' see a single can of coke these days going for less than £1 if the retailer is adhering to rrp.
Keeping competition fair between wholesalers and retailers.
And keeping margins fair to the consumer.