Page 4 - Default Effect News Today

Very tough discussion for sure. and we got many example in all europe of tough discussion between trade and, you know, fast—moving goods company. i think that we always have been very reasonable in the last three orfour years in the relationship with the trade, knowing that there is the right limit and the right balance sheet for them, for us, and the right threshold where the two faces can start talking to each other. so i would say its a very tough discussion, but probably thanks to our past...

Written the book on this. its called the invisible game the secrets and the science of winning minds and winning deals. kai—markus mueller, a real pleasure having you on this show. and kai, lets start with this. what are some of the tips and tricks that retailers use? well, there is a wealth of them in consumer psychology. but ill tell you a few of them. a very, very, very strong component is, for example, the default effect. so, for example, if you have a subscription, it renews by default an...

What the ingredients are costing our suppliers and we have an agreed kind of profit margin for them on top of their raw material costs and their operating costs. so we know exactly whats going on there. and, you know, we dont have the same access to the profit structures of our branded suppliers, but we do challenge them as hard as we possibly can. ok, so lets start with the raw ingredients. take wheat, for example. before the pandemic, about four years ago, a bushel of wheat was trading on the ...

Years ago, for example. so, kona, imjust wondering, do do we as consumers who, lets be frank, have been used to pretty cheap food for some years, do we have to just now get used to these higher prices? i think the whole 2000 and early 2010s where we used to enjoy really good prices for pretty much everything, we enjoyed low inflation for the longest time. those days are gone. were now going back to the 70s and eighties, not skyrocketing. inflation will come down, but were not going to see the ro...

Expensive food habits. well, on that point, kona lasker haque, my friend. a real pleasure having you on the show, as always, and, kona, ill talk to you soon. thank you so much. so there you go, thats the start of how prices get set. but how much does psychology play in the price that we pay for our shopping? well, my next guest has literally written the book on this. its called the invisible game the secrets and the science of winning minds and winning deals. kai—markus mueller, a real pleasur...

Opposed to a cheap painkiller. and, kai, what do you think about companies using shrinkflation? you know, keeping prices the same, but but making the product smaller? i mean, is that effective? if shrinkflation is effective depends very much on the perceptual threshold. so for example, in weight, if i compare two weights, i need at least two grams of difference for 100 by 100 grams to perceive that difference at all. now, over time, that becomes more so i maybe forget that last week, you know, t...

They buy and very sell the products to consumers. so i would say that its very, very tough discussion for sure. and we got many example in all europe of tough discussion between trade and, you know, fast—moving goods company. i think that we always have been very reasonable in the last three or four years in the relationship with the trade, knowing that there is the right limit and the right balance sheet for them, for us, and the right threshold where the two faces can start talking to each o...

7% that at the end they buy and very sell the products to consumers. so i would say that its very, very tough discussion for sure. and we got many example in our europe of tough discussion between trade and and and, you know, fast moving goods company. i think that we always have been very reasonable in the last three orfour years in the relationship with the trade, knowing that there is the right limit and right the balance sheet for them, for us, and the right threshold where the two faces can...

And kai, what do you think about companies using shrinkflation? you know, keeping prices the same, but but making the product smaller? i mean, is that effective? shrinkflation is effective. depends very much on the perceptual threshold. so for example, in weight, if i compare to weights, i need at least two grams of difference for 100 by 100 grams to perceive that. difference at all. grams to perceive that difference at all. now, over time, that becomes more so i maybe forget that last week, you...

To remain a supply side block, which remains mired in uncertainty. so whether its the grains corridor or exports flows, that can continue to be fraught with risk. and the final thing is the other producing regions, you know, we are seeing some sort of climate change, unfortunately, which does create havoc across the world, particularly tropical countries. so whether its floods or droughts, inevitably youre going to see some of that in some key producing region. and i think that, again, may affec...