InsideFood Message Board
Sign up Calendar
 
 
 


Reply
  Author   Comment  
Investigator

Avatar / Picture

Prophet/Sage
Registered:
Posts: 1,307
Reply with quote  #1 
Sysco doesn't like tuna processors either. Sysco ownership are damn conspiracy kooks.

How is it Sysco can claim:

"Sysco Corp., the Houston-based food distributor,  says it is paying too much for processed tuna and has sued the three biggest suppliers for alleged price fixing."

When they're collecting in the billions of dollars each year by falsely inflating prices to their end users?

And this quote is priceless. 

Sysco said it bought hundreds of millions of dollars of tuna at artificially inflated prices between 2004 and 2015. It is seeking unspecified damages.

http://www.chron.com/business/article/Sysco-says-tuna-processors-conspired-to-raise-12521850.php
0
northernms

Senior Member I
Registered:
Posts: 220
Reply with quote  #2 
Seriously. That is a good point. 
0
Investigator

Avatar / Picture

Prophet/Sage
Registered:
Posts: 1,307
Reply with quote  #3 
Quote:
Originally Posted by northernms
Seriously. That is a good point. 


This is a strange action by Sysco especially when you consider their "price" is just a "pass through" value. They don't really absorb any suppliers cost as they "pass it on" down the channel.

Higher prices = higher gross dollars

$0.50 lb x 30% = $0.15 
$100.00 lb x 30% = $30.00 

Which unit at which price do you prefer to sell?

No this is likely driven by the continued need for "hidden cash flows". The higher the price by the conspiring tuna and chicken suppliers the less ability Sysco has to "artificially inflate" their prices down the channel to those unsuspecting operators.

This is how their salespeople feel competing for some margin when all their products are so jacked full of "add-on's" that it pushes the sales person's ability to make a living right out the window.


This lawsuit has nothing to do with prices because Sysco doesn't really absorb the product cost, they just mark it up and send it down the channel. Sysco is angry because this collusion eliminates their supplier options. They cant play one supplier against the other to create large and larger spreads between the actual price and(to use their words) the "artificially inflated price" they bill their customers
0
bernicestockstill

Avatar / Picture

Newbie
Registered:
Posts: 5
Reply with quote  #4 
So what is the benefit? 
__________________
I tutor students in English, reading comprehension, writing skills (grammar and style), and literary analysis.
0
Previous Topic | Next Topic
Print
Reply

Easily create a Forum Website with Website Toolbox.