The reasons why prices vary from store to store

FRIDAY, MAR. 30: We at the Department of Consumer Affairs frequently get complaints about price variations in local stores, especially food. 

Rising food costs is not an issue that is unique to Bermuda, it is worldwide and while it is conceivable that a business may be overpricing, in most instances there are extenuating circumstances that affect pricing – hours of operation, utilities, number and quality of staff, insurance and cash flow are examples of variable operating costs which are reflected in store prices.

Shipping costs and rising fuel prices have a major impact on the cost of goods in Bermuda.

Most everything is shipped to the island and then has to be transported to warehouses and stores.

Here are few additional things to remember about why prices vary.

Size Matters

Smaller stores with smaller storage facilities normally can’t buy in large quantities and therefore it is unlikely that they can get the same quantity discounts that larger businesses get.

Location, Location, Location

We are all too familiar with rental costs in Bermuda. Location most often determines cost and ownership has its privileges - higher overhead can factor into the cost of the items being sold.

Services Offered

While some businesses will claim services as free or included in the cost, assembly, deliveries, installations and a warranties are often hidden in the actual price of the goods and services.

Quality

Sometimes what appears to be the same product or service at first glance is different once you take a closer look. You get what you pay for so examine the product or service carefully before you spend your money.

Number of Customers

Quite often, the more customers a business has the more they sell and the lower they can offer their goods and services. However, don’t assume that the big guys have the best price and value; this is not always the case. Some small businesses do have low overheads and can afford to be competitive, so shop around first.

Pricing Mistakes

No one’s perfect and mistakes do happen. Every now and then you will come across an item that appears to be priced incorrectly, don’t be afraid to bring this to the attention of the cashier or manager, you may not only help yourself but others as well.

Take the time to shop around and compare prices from store to store. Check the specials that are being advertised and essentially, if you do not need the item then don’t buy it.

Remember, the Bermuda Government does not control prices other than a few essential services like oil and electricity. This is a free enterprise system which means that prices are based on supply and demand and businesses can charge whatever prices they like.

Honey Adams is the education officer for the Department of Consumer Affairs.