Groceries are sold at a loss
D. Dundulis says that today the tendencies of rising food prices are undoubtedly observed and although, according to him, the usual way is that about 33 percent. food prices do not change, 33 percent. also rises 33 percent. is falling, today the situation is completely different.
“Today, I can say that it is the case that 33 percent. prices do not change, 50 percent. rises and only 17 percent. is falling, ”says D. Dundulis.
When talking about rising prices, the Norfa manager cites milk prices as an example.
“Today, the price of raw cow’s milk is 50-53 euro cents with VAT, and in the store 2.5 percent. fat 0.9 l already pasteurized and packaged costs 35 euro cents with VAT.
We sell milk at a minus due to competition and many of the cheapest products today to our day are sold at a loss.
By no means do I cry. If we do not sell one or the other product to a minus, the buyer will not come to our store at all. The cheapest products are sold in large volumes and all retail chains compete as a result and closely monitor that no one is more expensive.
The real amount today would be 2.5 percent. fat milk for 0.7 euros “, he says openly and says that if milk sold at a loss, the difference traders take back when selling another item, say, winter boots.
“We are looking at the overall picture,” adds D. Dundulis.
True, the entrepreneur observes that the fact that the prices of certain products are rising is not just a bad thing.
“To this day, the farmer receives those 50 euro cents with VAT for milk and he is hopefully thinking about business development,” he says.
However, it is not possible to say that everything becomes more expensive, according to the businessman. This is where the price of pork is currently being observed.
“A kilogram of carcass with VAT costs 1.5 Eur, when its cost is somewhere 1.8 Eur. This means that to this day we buy a pig for less than the cost of raising it.
When there is a shortage of pigs, the price will start to rise and then their production will start to increase as they are currently declining. It turns out that the more pigs you raise now, the bigger the disadvantage is, ”he explains, saying that pork prices will start to rise again in about half a year or a year.
According to D. Dundulis, in general, most of the prices are currently caused by the lack of certain products, which is also helped by the search for appropriate employees.
“To this day, we have a lot of people sitting at computers in the offices, but we have to understand that we have to grow something for us and the number of people doing that is gradually decreasing.
This, automatically, because no one wants to go to work in those sectors and, in particular, in livestock farming, is the fact that prices will really rise there, because there is less competition, less workers. These are the laws of the market, ”he says.
© Company photo
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Missing goods
The manager says that today the retail chain is also facing problems with the supply of goods.
“We see a shortage of some goods.
We now have the freshest situation: we have ordered artificial flowers from Asia for the Late Day trade. The order was placed in the dry month and they were made in May. Usually goods arrived in a month and a half, but to this day we have a situation that they will be late for November 1 and we will not have any five containers of these goods for Late, although we had to receive them in mid-summer, in the worst case, in September. And there are a lot of such situations with goods in our country, ”he openly says.
The guide emphasizes that the disturbances do not only concern goods for late trading, but also, for example, trade winter boots.
“Usually, the passages were just loaded with them, because they are started in the autumn, they are stacked and in the spring they are gone and redeemed. We don’t even have them today, “he says.
According to D. Dundulis, the fact that the goods do not arrive on time leads to transportation problems.
“I can’t say why there was a shortage of containers and ships for the transportation of goods, but in the final, everything takes a very long time.
Month his Asia we have been trading for 20 years and have been short of containers or ships for about a year now.
The thing is, our goods are made in Asia, but we don’t get them because of transportation problems. It is also incomprehensible that the cost of transporting one container is 20 thousand. dollars, when previously it was 2 thousand. dollars, ”he says.
To help you better understand the impact that rising transportation costs are currently having on prices, the guide talks about the situation with clay flower pots.
“Imagine we buy flower pots. A pot container costs 10 thousand. dollars, it is a cheap item, and transportation – 20 thousand. dol.
In the finale, everything looks ridiculous, because the pots become more expensive as a result: the price of the pots itself, and twice as much transport, and the transport of clay. But to this day, the situation is such that nothing is being produced in Europe anymore.
When transportation became more expensive, I told my management that we would look for manufacturers closer, but there is simply no place to buy from them, ”says D. Dundulis.
When the goods are more expensive and there is a lot of space in the container, then their appreciation does not affect the end buyer so much, and is only a few percent, the manager notes, but if they are heavy and cheap, the price goes up more.
“Of course, there is a good thing, the production of such things will increase in Europe, but there is also one ‘but’ here. We no longer have working people and I am not talking about Lithuania here, they are not all over Europe. In other countries, the situation is exactly the same.
I agree with the idea that there is also a shortage of workers in Lithuania, there are low salaries. But what about England? Why are they missing?
I think a generation has grown up that no longer plans to do black jobs. I understand the need for IT workers, there is a shortage of them today, but the question is whether the scales will not overwhelm those earthly professions and whether it will not happen that earthly workers will work more paid jobs than IT workers. Their salaries are already increasing today, ”D. Dundulis considers.
According to him, specifically for the Norfa retail chain, there is currently no significant shortage of staff.
“What 50 percent. shops you will not find a job, there collectives are full. Staff shortages are more pronounced in big cities, but that is certainly not the case with a critical threshold, ”he says.
Dainius Dundulis, manager of the Norfa retail chain
© DELFI / Laimonas Jankauskas
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Criticism of government decisions
Speaking generally about the work of the retail chain today, the manager explains that turnover has not fallen very sharply, but it is clear that if it had not been for visits only to those with a passport of opportunity, they would have been better.
“In my opinion, the government did not make an effort there, because first of all we need to be careful where there are the biggest problems.
The biggest problem now – educational institutions – schools, kindergartens. About 50 percent. The illnesses come from educational institutions, and now it is directed against the trade sector and, frankly, I do not know anything else that they would regulate in this way, except for trade, ”D. Dundulis does not regret the government’s decisions.
According to him, the trading sector to this day is one of the lowest chances of getting coronavirus infection.
“In my opinion, you need to shoot where there are a lot of sparrows, not where there are almost no ones. Just first you need to see where that problem is.
What’s the point? They may close those stores altogether, but nothing will change from that if the illnesses don’t go from there.
Now, in any case, we trade less, I am not saying that much less, but the amount is smaller, and the biggest beneficiary of trade is the state and its budget, ”he says.
It is estimated that about 30 percent. from the price of the sold goods travels to the state budget, so if the retail chain sells 10 mln. Eur, according to the state, earns 3 mln. Eur.
“Isn’t that the money they have here? Of course, at the state billions, the government does not see this, but then explain that there is a lack of money in the budget and then raise taxes.
The more we all create something, the richer our people live and the need to stop the economy unnecessarily. I’m all the time for safety, he’s in the first place, but there’s no benefit in this case, ”he says.
D. Dundulis states that today the government adopts the order one day, and the next day the business is already executing it.
“It’s just nice to watch business jump.
I think it would be impossible for the government sector to do everything in this way. And here on Wednesday we pass a law, and on Friday we are already enforcing it. Have you seen such a situation?
And the education sector, where the biggest infections are, is governmental, but the problems are not solved, ”says D. Dundulis.
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