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Do not want to pay dearly? Do not buy from Shestovich - Walla! Of money

2021-11-09T08:44:12.979Z


Who is to blame for the price increases? In the immediate list of suspects, you will usually not find Shestovich, even though she is a huge importer who raises prices whenever she feels like it.


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Do not want to pay dearly?

Do not buy from Shestovich

Who is to blame for the price increases?

In the immediate list of suspects you will usually not find Shestovich, although he is a huge importer who raises prices whenever she wants and fights anyone who tries to import cheaply.

In the absence of government protection, the time has come for consumer retaliation

Tags

  • Stowitz

  • Shestovich

  • Colgate

  • Palmolive

  • Brilla

  • Cost of living

Nir Kipnis

Tuesday, 09 November 2021, 09:56 Updated: 10:35

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Here's a short guided imagery exercise: Please close your eyes for a brief moment and imagine all the names that manage to anger you whenever it comes to the cost of living: The



government has a full expense account, so the cost of living of the ordinary citizen is a little less noticeable. Go to the marketing chains - the place where we end up parting with our money, continuing with large producers, such as Tnuva, Osem or Strauss and even the agricultural cartels that set production quotas in order to maintain a high price level.



It is doubtful whether you will see the importers among all this - and it is even more doubtful whether the name that Stovich will come to mind, certainly not as the main responsible for the cost of living in Israel.



Who is Stovic you ask? Well, this is a family that more than any other family (like Strauss for example), is in our house on almost every shelf - from the pantry in the kitchen to the bathroom: from the pasta remover to the toothbrush, the bath soap to the floor or window cleaner.



An even bigger doubt is whether we would have mentioned this name today, if the family company had not announced yesterday a tens of percent increase in the products it imports and markets in Israel: Palmolive products, for example, will increase by 20% -40%, Colgate for children will also increase. Also mouth-watering from the company.

The same is true of Ajax detergents - an increase in double-digit gaps.



In other words: no matter what closet opens in the house and in what room, to refill it we will have to pay more, much more.

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It's the truth

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June Shestevich: If his company is so sensitive to international changes in production or transportation costs, where is our discount for the tens of percent it has earned in recent years as a result of the weakening dollar?

(Photo: Walla !, Ronit Matias)

Where is our discount?

There is no question about the right of a commercial company to make a profit - and that Stowitz is a family-owned company that has been built since the 1950s with ten fingers. The question is when does the legitimate desire to earn become greed? Since the legislature (which was supposed to protect us through the Competition Authority or the Consumer Protection Authority, but failed) has no clear answer, let's try to formulate it together:



Apparently Shestovich, like other importers, has some good reasons for raising prices: some raw materials became more expensive, which led update rates of overseas manufacturers. so the maritime transportation costs skyrocketed: all container entering Israeli ports costs more dealer, regardless of its contents.



both these figures alone were to be a defense of June Schestowitz, owner and son of the founder of the company (acquired The other parts from his brother).



Why is this line of defense morally collapsing?

Because Stowicz buys his goods and transportation services overseas in dollars - and sells them to us in shekels.

If we examine what has happened to the dollar exchange rate in the last five years, we will find a strengthening of the shekel by about 25%.

In other words: if Stovich is so sensitive to the effect of global changes on the prices of its imported products, we should have enjoyed a big discount of tens of percent on those products, even before weighing in the shipping costs, right?



Have any of you received such a discount?

Because I do not - not at all - because no one thought that an improved profit on Brilla pasta or Colgate change ointment or Palmolive shampoo, justifies the incarnation of some of it to us, the consumers.

But look, this is a miracle: the price of the container has only risen - and the bill has already been submitted to us.

Victory chain: decided to introduce parallel imports - and received a red card from the importer (Photo: Flash 90, Miriam Elster)

Market is not really free

It is no coincidence that the name "Strauss" (for example) is much more familiar than the name Stowitz, even though they are both in every home in Israel to about the same extent.



The strategy of the family of importers throughout its almost 70 years of operation has been to put the brands at the forefront: Gillette (which has meanwhile been lost as a result of changes in ownership at the manufacturer), Colgate, Palmolive, Ajax and more.



So far this strategy is legitimate, not to mention successful, right? It's just that at the same time, Stashovich did everything he could to sabotage the efforts of anyone who tried to bring these brands in parallel, cheaper imports. In Stowitz, they collected information (legally, it should be noted) about parallel importers and passed it on to manufacturers abroad in a lawsuit to block their import channels.



Not only among the manufacturers abroad, the company tried, but also among retailers in Israel: Shelving the same brands in parallel imports, Stovich decided to boycott it.



Moreover, under the pressure of her (and other importers, here that Stovich is not alone) many products were excluded from the facilities designed to allow parallel imports to Israel, as part of the various import reforms - the last of which is in a budget approved about a week ago.

So a tough game is really no stranger to the old company.

The shelves are loaded with competing products, do not require Colgate or Palmolive (Photo: ShutterStock)

The wallet is still in our pocket

Did we say tough? Did you mention a free market? Did we talk about a boycott? Maybe it's time to take advantage of these parameters for our benefit, consumers: that Stovich has decided, quite legally, to raise prices because now she has to pay a little more for the brands she imports, we are the ones who should remind her that we got no discount when those brands cost her a little less.



Leaving containers and leaving an exchange rate: In the end, the only reason a company has products that have reasonable alternatives raises prices, is just knowing that nothing will happen to it. Because we like to grumble, but a little less to say goodbye to a beloved brand, just because the manufacturer or importer has decided he is not getting enough from us.



Raising the price of toothpaste for us? We'll move on to the competitor. Raising the price of detergents? We will wash the floor with another liquid. Has the price of pasta become more expensive? We will buy a competing brand that has maintained a reasonable price or we will eat flakes instead of eating the look that the importer sells to us.



In other words: if we wait for the competition authority, the consumer protection authority, the economy minister or any other government entity that is supposed to protect us, we will pay thousands more shekels a year.

On the other hand, if you cripple importers like Stovich in your pocket, there is a very good chance that they will think twice before the next time they dare to mess with us.

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Source: walla

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