Amazon mulling 10% Whole Foods discount for prime members

[dasherHampton]

https://www.cnbc.com/2018/03/29/who...ering-discounts-for-amazon-prime-members.html

I'm certainly no governmental expert but is this not violating the spirit of anti-trust philosophy? Amazon would by subsidizing it's grocery business to drive competitors out of business.

I read that the US postal service is not allowed to subsidize it's express shipping business with money made from regular mail.

 

[Puffnstuff]

I'm certainly no governmental expert but is this not violating the spirit of anti-trust philosophy? Amazon would by subsidizing it's grocery business to drive competitors out of business.

How so? Prime members get preferential shipment on orders, access to movies and tv content so how would giving them extra privileges at Whole Foods be any different? People pay for access to Sam's Club, Costco, BJ's to access lower prices. There's already a lot of competition in this sector and this will benefit the consumer.

 

[alien42]

Anti Whole Foods tweets incoming...

I heard they don't pay taxes and ship goods to China for free.

 

[dank69]

That's cool their food will only be 35% overpriced.

 

[Moonbeam]

That's cool their food will only be 35% overpriced.

Thank God too. It means my closer Lucky had been pushed to offer organic food too in order to compete in that market and still offer it cheaper. I saved on gas and a ton of time the other day when Lucky even had organic ginger. I would have bet my ass I was going to have to go to Whole Foods for that.

But Whole Foods also regularly has organic Agaricus bisporus in the white, crimini and portabello variations that are large and blemish free whereas the ones at Lucky often look sick.

 

[dank69]

Thank God too. It means my closer Lucky had been pushed to offer organic food too in order to compete in that market and still offer it cheaper. I saved on gas and a ton of time the other day when Lucky even had organic ginger. I would have bet my ass I was going to have to go to Whole Foods for that.

But Whole Foods also regularly has organic Agaricus bisporus in the white, crimini and portabello variations that are large and blemish free whereas the ones at Lucky often look sick.

I prefer my food cheap and full of steroids.

 

[dasherHampton]

How so? Prime members get preferential shipment on orders, access to movies and tv content so how would giving them extra privileges at Whole Foods be any different? People pay for access to Sam's Club, Costco, BJ's to access lower prices. There's already a lot of competition in this sector and this will benefit the consumer.

I don't think it's the same.

Amazon would be subsidizing the grocery business with non-grocery money from it's online sales behemoth revenue. No other grocery chain that I can think of can match that in any way, shape, or form.

What I learned in grade school is that the essence of an anti-competetive monopoly is subsidizing a business in exactly that way - a way it's competitors can't match.

 

[feralkid]

I prefer my food cheap and full of steroids.

I found some "organic" seltzer water at Fry's...wtf?

 

[dank69]

I found some "organic" seltzer water at Fry's...wtf?

Is that where they shove a bottle of water into a bull's ass until the trapped flatulence builds enough pressure?

 

[Moonbeam]

I prefer my food cheap and full of steroids.

What I am constantly amazed by, every time I visit Ranch 99, is how inexpensive the produce and many other products are plus the amazing variety. Sadly, I feel culturally inept when I shop there, especially in the fish department. There are thingi there I never knew existed and many of them are alive. But because China practices Trump style product safety regulations, I no longer will eat food made in China. It's cheap, though and potentially full of toxins, so it should be right up your alley.

 

[dasherHampton]

Lets make an extreme example:

Apple for some crazy reason decides to buy a unprofitable store in a small town. Instead of turning the business around they simply subsidize it with Apple money, lowering the prices until the competing stores go out of business. They then raise the prices above where they were before.

Presto - profitable store. But wouldn't that be considered anti-competitive behavior? Wouldn't the owners of the other stores have a genuine beef?

 

[dank69]

What I am constantly amazed by, every time I visit Ranch 99, is how inexpensive the produce and many other products are plus the amazing variety. Sadly, I feel culturally inept when I shop there, especially in the fish department. There are thingi there I never knew existed and many of them are alive. But because China practices Trump style product safety regulations, I no longer will eat food made in China. It's cheap, though and potentially full of toxins, so it should be right up your alley.

I'm always down for some new and exciting toxins. Hoping to gain a superpower or two.

 

[Fanatical Meat]

They’ll make it suck like the amazon Visa card only.
I don’t see a way where you could login at the store and
Not generate long lines
Keep people from sharing

Amazon credit card is the only way

 

[Ventanni]

Meh, even with a 10% discount, Whole Foods will still be overpriced. The issue with Whole Foods though is that they've had a poor branding strategy over the last few years. More people think of Whole Foods as being overpriced than they do their quality, and make jokes like Whole Foods = Whole Paycheck. That's a result of a poor marketing strategy, or lack of one. I've been in a Whole Foods though and their stores are really nice. Produce is excellent, meat section looks fantastic, and I dig their beer selection. But I rarely shop there 'cause their pricing are insane. The price cut will help, but Whole Foods needs to invest in their image.

 

[Anubis]

it could be a 50% discount and i still wouldn't go because the closest one is 80 miles away

 

[zinfamous]

That's cool their food will only be 35% overpriced.

this.

how would 10% off make Whole Foods any more attractive? It's a garbage store for uninformed hipsters.

 

[Fanatical Meat]

this.

how would 10% off make Whole Foods any more attractive? It's a garbage store for uninformed hipsters.

Have you been by recently? Their prices are substantially less than where they were pre-amazon.
They are still more than a big box store but not by that much.
Simple example, wilderness dog food.
4 servings for my pooch is $3.00 to $3.50 for the most expensive one. Run of the mill little Caesar is $2.80 for 4 servings.
*I will not feed my pooch food sourced from China

 

[Zorba]

I could see the argument that they are using their Monopoly power in one industry to try to create on in another, but I am not sure giving a token discount qualifies for that though.