Question

Discuss how Aldi's keeps their overhead costs so low.

Answer 1

ALDI

Aldi is the common brand of two german family owned supermarket chains. It has more than 10,000 stores in 20 countries and and estimated turnover of more than 50 billion euro. It was founded in 1946 by Karl and Theo Albrecht. Aldi's are famous in low price supermarkets. The reasons for it's low pricing strategies are :

• Aldi's keep standard business hours to minimise its overhead costs. Customers are expected to bring their own gocery bags and to bag their own groceries.
• Aldi's usually keep cost low by keeping less staff and also having each employees with multiple roles/tasks. Fewer employee cost resulted in the fewer business related costs and it will normally passed in to their customer also.
• Aldi's save money by not hiring cart attendants to gather them from the parking lot.
• Aldi's lower the prices by making their customers work.
• Aldi's able to keep their prices low by using cardboard boxes and crates to display products.
• Aldi's minimises the prices by being ecofriendly means, keep the lower prices by reducing it's energy consumption.
• Avoids big branding to save money. Aldi's always buys from the local farmers to keep the price low.