Price is the main thing that captures or de-captures the customers, so offering cheap products can take a company to the sky. Aldi is famous for its cheaper prices for branded products, and Aldi has never disappointed its customers on price issues. Let us know more detail about ‘Why Is Aldi So Cheap?’.
Why Is Aldi So Cheap?
Aldi is cheap because it usually offers cheaper products as compared to other supermarkets, and it also offers more than half of its products under its brand name, Aldi. Along with this, there are many more reasons that tell us why Aldi is so cheap.
This article focuses on Aldi, its products, and the reasons behind its cheaper prices.
About Aldi: Why Is Aldi So Cheap?
Aldi is a common US-based company that offers a superstore chain brand that is a bit cheaper than other superstores or markets. Due to cheaper prices, Aldi has been considered the first option by customers and has been famous in almost every corner of the world. Almost 20 countries have currently opted for supermarkets of Aldi in their states, and collectively, the number of supermarkets of Aldi has reached 10,000.
Aldi offers almost every product that is needed in a supermarket and most of its products are its own, i.e., it does not prefer products of different brands but it produces its products under the name of Aldi.
Aldi’s lower prices are due to the following factors:
There are many reasons behind the cheaper prices of Aldi, and a few of these reasons are stated as under:
- Aldi prefers smaller stores.
- The decoration of stores is minimal.
- According to the energy saving system, electricity used for lighting is regulated.
- less manpower.
- More private products
- External brand products are overstocked.
- Aldi does not offer shopping bags.
- Aldi does not prefer heavy or costly marketing.
- fewer working hours.
Aldi prefers smaller stores
Aldi tries everything to make it cost-effective and, keeping this in mind, it selects smaller stores for its supermarkets. The reason behind this is low rental costs for shops. Along with lower rental costs, having less stock in the store will also prove to be cost-effective for the company.
The decoration of stores is minimal
More than 70% of stores spend the majority of their money on decorations and include the cost of decorations in the prices that customers must pay. Aldi favors customers in every way and uses less decorative supermarkets so that consumer products can remain cost-effective.
Energy saving lighting system:
For its stores, Aldi prefers a proper energy-saving lighting system. It uses a minimal amount of light in stores to make consumer goods effective.
Less manpower
Aldi hires a limited number of employees and tries to manage the stores with a limited staff to save salary costs and use them to make products cheaper.
More private products
Aldi avoids external brands in its supermarkets because importing or buying other brands carries some fixed charges that a company has to pay, so to save these charges, Aldi manufactures private brands. Only 10 % of Aldi’s products might be imported.
External brand products are overstocked:
The 10% of external brands used at Aldi are overstocked because the company prefers to buy products in bulk so the prices must be reduced and sold at cheaper rates.
Aldi does not offer shopping bags
To reduce the charges, Aldi has set a rule for its customers, and that is to bring their shopping bags when they come to the supermarket. By reducing this cost, they are providing relief to their customers.
Aldi does not prefer heavy or costly marketing
Every company prefers to market itself through banners, TV advertisements, and large screens on roads or company outlets. On the other hand, Aldi avoids costly marketing because it uses all its money to provide cheaper products to its customers. You will never see television sets beside Aldi supermarkets.
Reduced working hours
To save energy, overtime salaries, and employee energy, Aldi has set fewer working hours. The working hours of Aldi superstores range from 12 to 18 hours. 11-hour working time has also been observed in most of the stores.
All these reasons make Aldi cheaper because a company that values its customers can always try to reduce the product costs so that customers can easily buy them and they can get more traffic in stores and fame among societies.
Conclusion
Aldi is cheaper because it has reduced all the unnecessary charges like lighting, decoration, marketing, etc. It is considered the first choice by customers due to its lower production costs.
Frequently asked questions (FAQs):
- Why does Aldi provide cheaper products?
Aldi aims to provide its customers with cheaper products because it cares about consumers and has adopted a powerful strategy of publicizing and getting more customers.
- How has Aldi reduced manpower?
Aldi has reduced manpower because it has few alternatives to these, and one of those alternatives is the rental cart. The rental cart offers the facility of inserting coins and taking the cart and returning the cart to get money back. By applying this facility, Aldi does not require cart handler employees.
