The real reasons why Aldi products are priced so low

According to Business Insider, there are three main reasons why Aldi porducts are priced so low. They are:

  • Although a smaller chain, Aldi has become a popular grocery store for many because of its cheaper prices.

  • Part of the reason why prices are so low is because the supermarket avoids using brand names as much as possible.

  • Aldi offers a smaller selection of items and as a result, the stores are smaller which keeps the cost of rent down.

 
If you check out this article on mashed.com, you'll also find out all sorts of amazing secrets about Aldi.
 

8 comments

I have noticed prices in Aldi creeping up lately, not to mention the fact you still have to go to Coles or Woolies to get the things Aldi don't stock. We done this for the last few years, but recently have been doing all our shopping at Coles. With the specials and home brand I don't think Aldi are now any cheaper. And with the points we generally get money off every couple of weeks, and cheaper fuel at the local Shell servo.

The Shell servos (Coles partners) near me are permenantly up to 10c a litre dearer than Caltex which is the Woolworth partner. I never use Shell for that reason.

 

Get a Coles Master card and get more flybuys because 2p ever $ spent in Coles, Target or K Mart and 1 point for $ spent elsewhere - paying power bills etc.

Adds up and then can go buy with flybuy dollars. 

Card is one costing $99 a year but worth it as get back that in spades if one shops Coles etc for groceries and then other shops, even Liquorland if drink wine beer etc. And I find heap sleft over for clothes for everyday. There is a cheaper card but not got the same amount of flybuys. Plus if you travel Virgin get points on that now I'm told. 

Gee KSS, that is surprising, Our local Coles Express and Woolworths fuel stations, which are located almost accross the road from each other, are very price competitive.

I gave up on Coles (Shell) servo's a while ago, don't even bother checking as they are always far dearer then others.

May of Aldi's products are actually better than the highly advertised American owned brand names, including the hardware which is almost always far superior to products costing multiple of what you pay in Aldi.

I bought a stainless steel kettle a few days ago for $20.  No internal plastic which breaks down and you then drink it.  Also induction suitable.  Same quality not available anywhere else where they try to flog their brand name junk for $100 or more.

Aldi has some items to avoid but not many.  My only complaint is Aldi has settled in and its prices are slowly creeping up.  Still a great way to save money and eat really well though.

I have been told by someone who works for a company that supplies fresh produce to Coles, Woolies,IGA and Aldi that the quality standard set Aldi is higher than any of the others.

I do the bulk of my shopping at Aldi but like Coles lamb and Scotch fillet.   Have noticed the items in the bins lately are dearer than similar items in KMart and have also noticed the weekly shop total slowly creeping up.  I don't know how any retailer store can compete with KMart prices, unbelievable! 

It is correct in saying that Aldi's prices are creeping up.  I'm just surprised it took so long.  Coles and Woolworths are also offering competitive prices lately as well.  WW seems to be equalling Aldi in fresh produce quality as well.

I do not shop at Aldi because Aldi is a privately owned foreign (German) company whereas their main competitors (Coles, Woolworths and IGA) are publically owned Australian companies. I prefer that my shopping dollars stay, as much as possible, in Australia. I have looked in Aldi and I do not see any price advantage in shopping there. Besides my 4 cents a litre discount on fuel and being able to use my credit card without penalty more than compensates for any price disadvantage that may occur.

the prices are lower because they were not a money grubbing duopoly which was ripping australians off but had a more ethical and moral business model.

May be. But there are only  a few companies in the world who makes minimum profit. 

Aldi never have a bar code number -- and everything is labeled from Minchenbury -- so I ask where the hell DOES it come from --- I buy Aussie made and owned -- and check all labels  I support our Aussie farmers and owners -- NOT other places and I buy fruit and Vegs IN SEASON not form other counties

8 comments



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