Posted at 5:00 a.m.
The most expensive Big Mac in Lévis
If you are on vacation in Saint-Sauveur, Lévis or in the tourist district of Old Montreal, your stop at McDonald’s will not cost you the same price. This was observed The Press by analyzing the price of the Big Mac trio. Contrary to what one might expect, the trio sells for more in Lévis ($10.99) than in Old Montreal ($10.69) and even next to the Bell Center ($10.29 $).
“We generally expect some form of price standardization in businesses under the same banner to avoid unfair competition between different retailers,” said Yany Grégoire, holder of the Omer DeSerres Chair of Commerce at HEC Montréal, over the phone. This is also the best practice to adopt. The prices are generally very uniform online and in store, because we also want to avoid competition between our own channels. »
PHOTO PROVIDED BY HEC MONTREAL
Yany Grégoire, holder of the Omer DeSerres Chair of Commerce at HEC Montréal
If there are differences, it must be well justified by the higher costs of rent and supply. A parent company that did not do so would have difficulty finding franchisees.
Yany Grégoire, holder of the Omer DeSerres Chair of Commerce at HEC Montréal
McDonald’s Canada declined to explain the reasons for the price difference.
Up to $5 difference
While observing The Press noting the prices of twenty items in a Pharmaprix in Montreal, a customer was surprised by the process: “What? The prices are not the same from one Pharmaprix to another in the same region? »
This customer, who suffered from heartburn, would have paid $1 less for his Tums ($13.49 instead of $14.49) at another Pharmaprix located 600 m away on the same rue Sainte- Catherine West in Montreal. It is clear that it is more economical to suffer from stomach aches on the South Shore, even if the price is not identical in the two Boucherville businesses ($11.99 and $12.99).
Making love is more expensive in Montreal
If the sudden urge to make love arises, it is best to be on the South Shore. In Montreal’s two Pharmaprix, the box of Trojan G-spot condoms is sold for $24.99, while in Saint-Bruno-de-Montarville, it retails for $22.99.
In our visits to six Pharmaprix stores on June 23, the biggest price gap was seen for Aveeno Baby Eczema Care Cream Jar. It costs $5 more in Montreal than on the South Shore.
However, the Tempra was on sale at both Montreal stores for $5.99 instead of $9.99. For this product too, the current price is not the same everywhere. If your child has a fever in Boucherville, it will be cheaper ($8.79).
“We set regular prices for items by zone, which is determined by a number of factors including local competition, the general performance of the branch or whether it is located in a mall, for example” , explains by email Johanne Héroux, senior director of corporate affairs and communications at Loblaw, owner of the Pharmaprix.
A branch manager may, for several reasons, choose to reduce the price of certain items. For example, he can affix a discount when a product is approaching its expiration date, to liquidate a large inventory, or if a change in merchandising is planned in his branch.
Johanne Héroux, Senior Director of Corporate Affairs and Communications at Loblaw
“It’s not surprising that it’s more expensive on Sainte-Catherine Street,” analyzes Yany Grégoire. What determines the price is the rental cost of the rent and people’s willingness to pay. In an airport where you are captive, for example, you are ready to pay more for Starbucks coffee. We can think that on Sainte-Catherine, the tourist clientele is ready to pay more. »
A skillet $240 more expensive
In the five Canadian Tires visited by The Press, had to search to find price differences between branches. If the price of a sleeping bag varies when it’s on sale from $44.97 in Montreal to $49.97 in Longueuil, it won’t be worth the miles.
However, when the same skillet sells for $109.97 on sale in Longueuil, $149.97 on sale in Boucherville, and $269.99 regular price in Saint-Bruno-de-Montarville, you might want to 30 km to save $160. And what about having it delivered to your home? On the chain’s website, the same Paderno Canadian Signature 32 cm frying pan is displayed at $349.99. You read correctly !
There are local and personal realities. If the independent franchisee has bought a lot of sleeping bags, is not a good seller and has a lot left, he will be tempted to lower the price further.
Yany Grégoire, holder of the Omer DeSerres Chair of Commerce at HEC Montréal
Asked about this in the various Canadian Tires, the employees explained that the red tag discounts were often different from one branch to another. “Our stores are independently owned and operated by Associate Dealers,” confirms Cindy Hoffman, Director of Communications. They may sell products at prices lower than the prices listed online or in the flyer and may offer special in-store offers at their discretion. »
“To ensure our customers get the best possible price, we have implemented our Best Price Guarantee which allows stores to match a lower price found on an identical item from local competitors, including other stores. Canadian Tire retail store,” said the director of communications.
Looking for the right price
Our reporter visited different branches of three major chains to compare prices.
