Thursday, November 01, 2007

[price fixing] can’t even trust the nordics these days

Chicken breast, believe it or not ...

I know, I know I’ve neglected the gentle world of Iceland recently so popped in just now and was shocked by the rampant price fixing which is alleged to have taken over the retail sector:
To test these accusations, RÚV sent two reporters to Krónan and Bónus to investigate the price of products like chicken breasts.

At first they were disguised as “normal housewives” shopping for groceries and then the reporter who went to Krónan appeared as a reporter intending to survey prices in Bónus and vica versa.

The price of chicken breasts remained the same in Bónus in both cases, but in Krónan, the kilo price of chicken breasts dropped by 34 percent when the reporter said the price was being included in the survey and a discount on the product was increased from ten percent to 50 percent.

Both managing director of Bónus Gudmundur Marteinsson and operational manager of Krónan Kristin Skúlason denied accusations of price fixing and other deceptive tactics in price surveys in an interview with RÚV yesterday.
I have a few questions:

1. What's an "abnormal" Icelandic housewife look like? Are there many of them and do they wear clothes? Would we want them to?

2. What do Icelandic chickens do in winter?

3. Was there any possibility the reporters telegraphed their moves?

4. Could the interview have possibly gone like this:
RÚV We sent a cunningly disguised "normal housewife" to your store to check prices. Then we sent a reporter.

Kristin Skúlason Er … yes.

RÚV And you immediately dropped prices 34 percent.

Kristin Skúlason Er … no.

RÚV But we have the dockets here to prove it [hands them over].

Kristin Skúlason They’re not our dockets.

RÚV But your store’s name is written in large letters across the top – Krónan.

Kristin Skúlason [Quickly scribbles on docket] Says Bónus.

RÚV Mr. Skulduggery, you deliberately falsified that docket.

Kristin Skúlason You want concrete boots? Cod are hungry this time of year. What’s your name anyway?

RÚV Njala Sverisdottir, phone 234 593 567 78. Mr. Skullcap, are you threatening me?

Kristin Skúlason Heaven forbid!

RÚV Mr. Skull, I’m going to ask you one more time – did you or did you not drop your prices when you knew you were being surveyed?

Kristin Skúlason No.

RÚV Well that’s all right then.

Kristin Skúlason Cheque’s in the mail.

Chicken breast - in case you missed it the first time

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