Yesterday I went into the INS Market at 45 Carlton Street to pick up something and I noticed in the refrigerators they were selling a selection of beer. I also noticed that there were no prices shown! I asked the clerk how much was a can of Laker Ice 473 ML which is my brand of choice, and he looked it up and said $2.49. This same can of beer sells for $2.35 at the Beer Store, LCBO and Metro. Is it normal for the convenience stores to jack up the prices of beer? I realize convenience stores are not known for low prices, but alcohol is already overpriced as it is in Ontario. They should just be thankful they have been given the chance to sell beer!
On an important sidenote I had gone into this INS location (second time I ever step foot in an "INS") to buy a bag of caramelized popcorn. I had bought a bag about a month ago for $1.49. When I went in this second time there was no price listed for the bag of caramelized popcorn in fact there were NO PRICES ON ANYTHING IN THE STORE!
I asked the clerk how much the bag of popcorn was. He checked and replied "$4.51"! At that point I told him the place was a rip-off and vowed to never step foot in an "INS Market" again. I then proceeded to Loblaws across the street and bought two boxes of "Crunch N' Munch" for $1.49 a box! I never thought I would have to seek refuge from high prices by going into a Loblaws!
The morale of the story as always is BUYER BEWARE! Perhaps this post should be in the downtown supermarket thread since these INS markets have popped up everywhere and I suspect some people (who don't look at prices) are doing their regular grocery shopping there.
Coincidently prior to entering the INS Market I walked past the 7/11 location at Yonge & Carlton and it is completely boarded up. Don't know if it is for renovations or if it is gone for good. Was this a factor in INS removing the price of EVERYTHING in their store?
I would be interested in hearing if others have had similar experiences with this INS Market chain that has sprung out of nowhere in the last year or two. I was going to post a review on Google for this location but for some reason INS Market hasn't listed its store on Google. I wonder why?
May I suggest less use of 'All Caps' in future posts.
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. Is it normal for the convenience stores to jack up the prices of beer? I realize convenience stores are not known for low prices, but alcohol is already overpriced as it is in Ontario. They should just be thankful they have been given the chance to sell beer!
There is virtually no profit at all for convenience stores or grocery stores selling alcohol.
They have to buy from the LCBO, and they get a 10% discount vs what you and I pay retail.
So, that beer that's $2.35 at LCBO costs the convenience store $2.12 a can, if purchased as singles.
They then have to cover their overhead (rent, utilities, insurance, loss provision, and staffing costs), and only then do you get any profit.
There is no way they are selling beer as cheap as LCBO.unless they are losing money on it.
A normal wholesale market (varies by product class), but in general, would sell at ~50% of retail to a retailer, who then marks it up 100% to cover their costs.)
In the case of alcohol specifically, the standard mark up in the U.S. varies between a low of 25% and a high of around 50%.
(in general, products which move at volume get lower markups)
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If you have a complaint about the price of beer in Ontario, you might wish to take that up with the provincial government. Beer excise tax is the single largest reason for prices being comparatively high in Ontario. Additionally, the LCBO's standard mark up, for most products is 129% (which as noted above is in the range of triple industry norms elsewhere.)
That is not the fault of convenience stores.
Of course, when you lobby for lower taxes on alcohol, and lower LCBO mark-ups, do remember, that that is government revenue, and if they get less, it either means service cuts, or higher taxes on something else.
