Walmart announces price cuts in SA

2011-06-26 12:18

Johannesburg - Six days after US giant retailer Walmart completed its acquisition of a controlling stake in Massmart, it started advertising price cuts and new business opportunities for South Africa.

An eight page colour advertisement in the Sunday Times newspaper was South Africa's first introduction to the Walmart brand.

The advertisement included a letter from "the people" of Massmart and Walmart announcing the merger and price cuts by the group's retailers Game, Dion Wired, Makro and Builders' Warehouse.

Massmart also said it intended creating 15 000 jobs in the next five years.

"While there are other exciting promotional campaigns planned, this offering so soon after the finalisation of the Walmart merger is a clear demonstration of Massmart and Walmart's intent to save people money to live better," Massmart CEO Grant Pattison said in a statement on Sunday.

Earlier, he told the Business Times there were no plans to open Walmart-branded shops as the local brands had "plenty of value", and there were plans to open 40 more of them in the next financial year.

However, these brands would be advertised under Walmart's blue and yellow logo.

Walmart completed a R16.5bn conditional transaction to buy a 51% stake in Massmart Holdings [JSE:MSM] on Monday, after getting the go-ahead from the Competition Tribunal.

The merger was conditional on the setting up of a R100m supplier development fund, no merger-related retrenchments for two years, and recognition of the SA Commercial Catering and Allied Workers' Union for three years post the merger.

In the statement on Sunday, Pattison said the supplier fund was being created.

Walmart has 55 brands around the world in, among other countries, Canada, Brazil, China, Chile, Japan and Mexico.

Its share of Massmart would be a stake in emerging African markets.

Before the deal was concluded, the South African government and unions voiced concerns that it would lead to job losses and hurt local procurement.

However, the Competition Tribunal found that the conditions to counteract this, which were proposed by Walmart and Massmart, were sufficient and were enforceable.

"Both Massmart and Walmart remain committed to partnering with the South African government as well as all key stakeholders, and we stand by our stated commitment to encourage other international companies to invest in Africa's vibrant economy," Walmart CEO Doug McMillon said in the statement.

  • DonQuixote - 2011-06-26 12:34

    If you are negotiating the possibility of buying a something-inch HD Samsung LED TV from Game, you really should not make a fuss about price cuts. Especially when contemporary consumer culture remains disgusting against the possibilities afforded to the majority of the population. If only they could bring the PROPER Walmart stores here to drive down bread prices, milk prices, egg prices, etc. etc.

      liesl - 2011-06-27 06:30

      Agreed. Some relief on the food front would be pretty awesome. Expensive game, eating, nowadays.

      Thembisile - 2011-06-27 10:32

      Well said.

  • Anthony - 2011-06-26 12:39

    this company is chinas 3dr largest trading partner. they are more powerfull than the vatican. pleanty of businesses will close thier doors for the sake of cheap comsumer goods. good luck South africa

      alan.rigele - 2011-06-27 07:52

      And how is that different to the China Malls, China Bazaar, China shops, which do not contribute to the GDP and the SARS blackhole. Now with the CPA, the consumer has the right to return the product to the store if it is faulty, instead of the cheap junk being sold.

      DeonL - 2011-06-27 08:53

      Competition is good, it should help to drive down prices.

  • The Spear - 2011-06-26 12:55

    Hey, we don't need foreign investment! It is all bad! Let's nationalize. Crazy ANCYL

  • Valis - 2011-06-26 12:58

    Boycot Walmart! " intended creating 15 000 jobs" You mean *destroy*. Walmart destroys jobs everywhere it goes, not create them.

      Lydon - 2011-06-26 15:19

      No. You're welcome to continue paying the prices local retailers ask, however. Enjoy.

      Collitjies - 2011-06-26 15:29

      Give them a chance to put their money where their mouths are and then and only then can you start passing remarks as such if they fail to do so.

      christine - 2011-06-26 17:06

      ablolute rubbish valis ---where do u get your facts from --do me a favour ,when walmart gets here and YES they ARE coming -despite the best efforts of cosatu and the government ---dont go and buy there stick with ur local shop

      Zanu - 2011-06-27 05:49

      Valis is correct. Economics works on models & case studies of supply & demand. Yes, you will be paying cheaper at the tills because the goods you are buying is essentially from China where labour costs are cheaper, thus South Africans will intern start supporting Chinese factories and businesses. The Hoax of 15000 new jobs is because of their "planned" 70 new stores. Lastly, and most importantly, is the Multiplier effect (I will try and explain this economic theory as simply as possible) you work at vodacom one of your customers is a Paper Mill 25KM out of Port Elizabeth, the paper mill spends R35000 on cell phone charges for the company, paper is sold to company B to produce 'paper plates' paper plates are later packaged and sold to company C, also known as Makro – (this is a very small example of a Multiplier cycle) If the same plates can be bout in China (and they can) for half the price (because of Government & union intervention in the wages/salary market) then Makro will intern stop buying from the local paper plate producer (in 2 years as agreed), who will stop buying paper from the paper mill, who will have to close their accounts with Vodacom, who will have to retrench workers due too loss of income... this is the Multiplier effect - and is true too any democratic, free market economy, like ours. So Yes we can celebrate cheaper prices at the till... but will you still have a Job? That will depend on you customers' customer... FACT

      Zolani - 2011-06-27 10:17

      @Zanu, everthing from any existing Shop is made in Asia, look on your Desk, Touch something I bet you its made in China.

      Danie - 2011-06-27 10:43

      No, they just get rid of unproductive in our case "Cosatu affiliated" workers.

      Zanu - 2011-06-27 10:56

      Zolani Walk into a Makro today: Where is most of the foodstuff made? RSA Plastic products like ADDIS, Pioneer plastics, SA leisure (and many more) made? RSA Pool care product HTH, Quality Pumps (and many more)? RSA Office furniture office paper, envelopes etc? RSA So yes, many things are made in the east like electronics & clothing, however, with Wallmarts' buying power; more SA goods will leave the stores come the 2 year deadline. However, I don’t know why arguing, because what is done is done, and the damage is already done... at least we can take comfort that we will be saving on our till slip!

      Matt - 2011-06-27 11:52

      @ Zanu - the reason SA stuff will leave the stores is because both manufacturers and stores are greedy. Imported goods are getting cheaper than SA goods... in some case, MUCH cheaper - and not even talking abuot cheap Chinese stuff, even stuff from Europe is getting cheaper than the local alternatives!

      Zolani - 2011-06-27 14:01

      why have you got HTH on your desk, Typicall touching your lunch Box, try turnning over your Mouse

  • sainsaudi - 2011-06-26 13:07

    It's about time prices in South Africa went down. In countries where Walmart, Costco, Carrefour and others have set themselves up the prices are very affordable. Whether it's union activity in the continual raising of wages which affects the price of commodities, or just pure greed on behalf of the big four, Pick n Pay, Checkers, Spar and OK Bazaars, South Africa has become a very expensive country to live in, and people are becoming poorer and poorer, especially people like teachers, nurses and police officers. Therefore, any cut in the cost of living is welcome. Now, we need to get more of this type of direct investment into the country. More jobs, exposure to overseas competition and management style, and a greater awareness of international tendencies can only benefit the country and her people.

      christine - 2011-06-26 17:12

      great comment sainsaudi i have lived in england for 3 months on a contract not in london but outsise the city would you believe that almost EVERY ITEM in their supermarket [tesco] is cheaper than south africa makes you think

      Justfred - 2011-06-26 18:53

      well said. The big disease in South African retail and other sectors is called "greed!!!

      Palian - 2011-06-26 21:16

      It will be the same as when say, McDonald's opened there doors here. Firs, very low prices until the 'little guys' are squeezed out. Once they are rooted, the prices shoot up. Unfortunately so, but just watch and see...

      mymening - 2011-06-26 23:20

      I agree. Same experiences in supermarkets in France and Germany. South African prices shockingly high. Something has to change.

      logical - 2011-06-27 10:21

      OK Bazaars?1? Did you time travel in from 1989? Both OK Foods (Bazaars) and checkers belong to the Shoprite group.

  • John - 2011-06-26 13:14

    Yes Wallmart will surely create jobs. However quite a few smaller companies in the retail Industry will close their doors and this might have a ripple effect.Those at the moment importing from China to stock their shops will stop doing so and just maybe the Freight Industry in South Africa will also feel it? I am for investment but it must not be to the detriment of the smaller entrepeneurs. But then again ultimately the consumer makes the decision. It can be tough out their for the smaller companies!

      Albert - 2011-06-26 16:47

      John, and to all those other small businesses out there. I was in the same boat in 1990 with big boy competition. Got hold of a book called "Up against the Wal-Marts". It changed my thinking, proving a point that you can profitably run a very small business even if a Wal-Mart opens right opposite you. Been there, done that and survived the competition. Fear is the biggest factor that makes a small business go under. Another book i can recommend "When the going gets tough - the tough get going".

      christine - 2011-06-26 16:57

      its called business, john!!!!!!!!

      KD - 2011-06-27 07:55

      NO christine, its called pushing out the little guy. Much like one of our larger dairies has done to the smaller players. You call it business, but if you actually had a clue what you were talking about, you would realise how bad it can be for the consumer. Having more players keeps a healthy level of competition going, and prevents monopolies. The demise of the small family-owned business is tragic.

      mikedek - 2011-06-27 07:58

      The problem John is that within the market that Walmart operates we already have large corporates dominating the market and the small business was pushed out years ago. We need to investigate the Niche markets where they have no time to participate and fill the gaps.

  • Centronix - 2011-06-26 14:05

    Walmart FTW

  • james4usa - 2011-06-26 14:25

    I Ballroom dance, the shirt that gets most compliments, a $12 George shirt from Walmart.

      Matt - 2011-06-27 11:31

      You can buy George in Pep Stores for less... although I suspect them of being rejects. In the UK, Asda (part of Walmart) sells George too and there's a stigma about peopel buying George clothes, ie. you're poor... but that's what the UK's like :-(

  • Paulus - 2011-06-26 17:40

    I was in the states - I love wallmart! cant wait to get some better prices and variety locally!

  • TheUgly - 2011-06-26 18:00

    For me Walmart means a new 3D LED Full HD 50 inch TV at half price. For millions of small business owners in SOuth Africa it means the end of the line. So much for job creation.

  • Hasan X - 2011-06-26 18:28

    Walmart just started phase one: Slashing prices. The competition will have to lower their terribly inflated prices or die.

  • tootingdel - 2011-06-26 19:14

    I'm often in the USA and the UK. Prices in both countries are almost always 20/30 per cent cheaper. And that's with wages and overheads much more than in SA. SA has become very expensive without any real benefit to ordinary South Africans - the country needs expertise from overseas to show how people can benefit from lower prices and get job opportunities too.

      Matt - 2011-06-27 11:30

      Yeah but by no means with everything. In the UK prices for fresh goods are so high that the average Brit can't afford to eat proper food - eg 2kg of potatoes for £2.50 - in SA you get 7kg for that. But then they sell 2kg of oven chips for £1.10 (half price of SA) - hence the UK has a health problem... plus, look at the price of other things too - rent, utilities, council rates and taxes, private medical (USA) - overall SA still offers a better cost of living - even despite all the price fixing and thievery!

  • MrSpiderman - 2011-06-26 22:23

    Let me stir? Wallmart for ANCYL President!!!!!!!!!!!!!

  • Brian - 2011-06-27 02:44

    Still waiting to see those so called cuts - have not seen anything substantal yet

      Niren - 2011-06-27 12:54

      Huge ad was in the Sunday Times. For example, bottle of Chivas Regal, R199

  • maseratifitt - 2011-06-27 06:21

    Now, if only we can get VAT back to 4% and fuel levies down to 10%.

  • Sisie - 2011-06-27 07:30

    In this throw away society that we live in today -cheap is good. Besides the big stores in this country have been taking the consumer for a ride for too many years, and we still fall for their shtick...because we have no alternative. Bring on Walmart! They say competition is good for the soul, certainly good for the consumer.

  • hellodanie - 2011-06-27 07:58

    GREAT for the consumer in the short-term, but I believe this is how small-to medium enterprise is destroyed and it is the demise of community based interactive business that keeps economy's like Switserland's, Norway's and Germany's strong. Globalisation looks good on paper and ito GDP growth, but ultimately destroys jobs and communities. Th strong wins again and the biggest rat will again win the rat race!

      chappy - 2011-06-27 09:51

      Afraid I have to correct you there - Germany and Switzerland's economies are not financially strong. On paper both countries are actually bankrupt.... but I do understand your sentiment.

  • shwynix - 2011-06-27 08:20

    I welcome Walmarts price cuts. I do not understand why South African's rape the consumers the way they do with exorbitant prices. I took to buying my goods on ebay where i get it 80% less for exactly the same product and thats with customs duty and post and packaging.

      ZACommentator - 2011-06-27 10:13

      Because the can :-)

      Wired - 2011-06-27 12:46

      how would you get 80% less? And you cant buy groceries on ebay.. what did you buy anyway?.. im not giving you crap about your post, i just want to know so i can buy too!

  • Carolyn - 2011-06-27 09:03

    As a pensioner, I will welcome Wallmart with open arm's if it enables me to live more comfortably, I am sick of paying the earth for the small amount of food I can buy with my R1140 a month.

  • lamha vukawe - 2011-06-27 09:43

    Bring it on, Walmart. I maintain a budget spreadsheet, and prices of almost all the foodstuffs and cleaning materials I buy have more than doubled since I started the spreadsheet in mid-2007. SA supermarkets, all 4 of the big ones, are a massive colluding bunch of RIP-OFF artists. Example: dishwashing powder was R18.99 in 2007, I challenge youto find the same product now for less than R38.99, it is more oftem R42.00. Same applies to a simple thing like dog biscuits. They went from R29.99 for 1kg to now R42.99 for the exact same package. The 20kg bag of dogfood that I buy at the vet, on the other hand, has gone from R380 to R400 in the last 2 years! and it is basically the same stuff as the dog biscuits are made of. Makes you think doesnt it?

      Kobus - 2011-06-27 11:24

      Lamha, why don't you send that spreadsheet on to News24 so people can see the extent of the rip off. I'd love to see it, and hopefully we can get the retail fat cats to respond (lie) and we can have a good laugh.

      Matt - 2011-06-27 11:28

      Yes, and the supermarkets all increase their prices at the exact same time, except Spar which does the increase a little earlier to get more money. The specials are mostly on the same goods and around the same percentage of savings... And, local is NOT lekker. As the manager of a Checkers store pointed out to me, it is far cheaper to import something from overseas and replace it if it's faulty, than to sell SA stuff because SA stuff is way too expensive by comparison. I went to Pick and Pay the other day and was disgusted - imported European stuff is cheaper than local stuff! EG Douwe Egberts 250g coffee for R32, the best darn coffee there is from Holland - local stuff was a minimum of R43!

  • Sisie - 2011-06-27 10:17

    I was in the UK not so long ago. There the consumer is so much better off than here. All big companies whether SA or overseas take Africa for a ride, i have come to the conclusion that when they said "the streets are paved in gold" they really thought so. Example they had a variety of fresh meat (pork/mince/whole chicken/steak/lamb chops) and you can choose ANY 3 for 3Pounds even with exchange rate that is R33 for any 3, here for any 3 you pay over R100. What a rip off this country is. And the consumer just sits back and takes it as there is no way we can fight these BIG Stores.

      Matt - 2011-06-27 11:23

      I'm from the UK and disagree to a point. They have killer specials (I've seen 95% discounts) but a lot of the people there are poor and are limited to the "budget" brands. But electronical goods and clothes are much cheaper up there... still, food works out MUCH more than here. Just 2kg of potatoes costs you like £2.50 = almost R30, here you get 7kg for that. Oh, and rent, utilities, PAYE tax, council tax... life overseas is not easy! I find life in SA much easier and get far more for my money than I'dever get in Europe on double that money! What SA should learn from overseas though is that oligarchies do no good at all. There, you have many competitors producing the same kind of thing, and there are price wars - here they all just club together and fix prices. Here, most of the time, you have no or little choice and are basically given the options "pay loads or f-off". Personally, I choose the second option. I'd rather go without than get robbed...

      jabski - 2011-06-28 08:14

      agreed to a certain extent. but we have monopolies now in the uk. mass manufactured goods are cheap. ie processed foods full of E1's E2's etc and chemical ingredients. however, fresh goods are still expensive compared to SA. western supermarkets are now petrol staions/restaurants/clothing retailers etc etc. they want it all and will eventually out price all the competition but if you want whats good for you in your system that is something they do not have a monopoly on yet and you WILL pay for those goods. here in South Africa we just have local sharks in charge of P n P, woolies etc making the most of our stupidity while they can. walmart is a different animal. they will crush them all but we will all be sorry about it when we realise how they operate

      Henry Van Niekerk - 2011-06-28 09:45

      @Matt I lived in the UK for a year in back in 2007. I can't see how life in SA is easier. In my experience it's the other way around. I only had to work for half a week to pay my rent and utilities. I spent about 40pounds a week for food, so thats another 2 days' work for a month's groceries. The transport was about 100pounds a month, and that's all the things you HAD to pay. The rest was spending money, and it was alot. The one thing that was expensive though was to go out to clubs and bars. The drinks were expensive. Paid 10pounds for a drink one time...

  • Debbie - 2011-06-27 10:21

    oh well there goes the man in the streets little shops they will all be closed within 5 years. So sad

      Currie_Mafia - 2011-06-27 11:41

      I seriously doubt it...It's the comparable competition (PnP, Checkers, Spar) who have to watch out !

      Pickle - 2011-06-27 13:00

      If the man in the street can use Wallmart for their stock and still make profit then whats wrong with that? My Father in law had to close down his shop because Makro sells their goods now at the same prices as pick n pay etc... And simba and coke don't deliver to the little guy if he doesn't order enough stock.. I say give wallmart a chance...

  • Danie - 2011-06-27 10:40

    Don`t get all hyped up by this. The other 4 rip-offs will soon get government to fix goods at minimum prizes. Pick-Pay have tried to sell Petrol at reduced prizes , but was stopped in their tracks. I see the same going to happen with Massmart stores.

  • Matt - 2011-06-27 11:24

    Going by the usual trend in SA - they will have a few starter specials that are a little lower than other stores, before resorting to the usual price-fixing that means that shopping around for a deal is often futile... look at the cellphone industry as an example

      Warren - 2011-06-27 13:55


  • Susan Benade - 2011-06-27 11:39

    What small retailers are everyone on about? The Cafe on the corner? those few what still exist buy their stuff at Makro. Sure you can go to makro yourself but the niche of the small business is different - smaller quantities, closer to their customers, convenience etc.

  • moodley - 2011-06-27 11:41

    Life is about choices. For those of you who want to support local, nothing stops you from continuing to support these brands or stores.For those of us who feel we are being ripped off (I have been to both UK and US, and feel that we are!!), we can become Walmarters.Looking at all the support for the high prices of our local dealers, there is no way,thanks to your loyalty, that these stores will be doomed. Thanks Walmart, the pair of socks I bought for approx.$1 a few years ago at your store,is still keeping me warm this winter. Walk into any store here and try to buy a decent pair of socks, that won't blow your budget.

  • Peeved - 2011-06-27 12:10

    Well lets hope Walmart will bring our prices down and not get into bed with our other greedy monopolitic supplier chains that collude to rob us. And of course Julius will want want a stake in this pie soon once he finishes up killing our mining industry.

  • blcksoul84 - 2011-06-27 12:10

    conglomorates ,its a big plan to control the world, u idots i happy to save a few bucks wait until your water is filled with chemicals amd walmart closes their doors , just wait the new world order is here , save your soul not money but your soul

      jobe1025 - 2011-06-27 15:56

      get a girlfriend

  • WhoGivesAshi - 2011-06-27 12:17

    Walmart for teh win.

  • DandyLion - 2011-06-27 12:35

    Wait until Malema wants to nationalise Walmart as well...

      Brz15 - 2011-06-27 13:52

      What a comment...that was sharp, I have to give it to yo...HA HA

  • Johann - 2011-06-27 12:42

    I paid $40 for a Levi's jean in Orlando USA call it R280. I tried a Levi's store in SA 2 weeks later, same jean ,same style,R599.99. Who is screwing who?

      Ockert - 2011-06-27 13:12

      The Tax Man, import taxes, excise duties, additional vat on these - just to name a few extras they add on.

      Aristotle - 2011-06-27 15:39

      Ockert, you forget that the price in the US also contains those taxes, but when you export it you get a tax rebate and therefore it shouldnt be so much more expensive here!

      sharpeijane - 2011-06-27 20:31

      Its all made in China and I think the duty into US is less than the 40% duty paid on ready made garments into SA...........

  • Punani - 2011-06-27 13:53

    About time that the "Big 3" (PnP, spar and Shoprite) get knocked off their pedestal. They preach low margins and prices to the consumer, but hide the real profits that come from Supplier agreements. They force suppliers to hike their prices, but get it all back in the form of promotional discounts, rebates, tally's, growth incentives, advertising spend, making suppliers cover store expensed etc, etc. The "back-door" margin is what these retailers have built their business on. The Walmart strategy is to use all their preferential trading terms to get the lowest selling price that they can. In the words of Shoprite's Whitey Basson, "When the tide goes out, we will get to see who has been swimming naked!" Shoprite, PnP and Spar haven't worn costumes for years. And the tide's going out.

      pee_m_vee - 2011-06-27 16:24

      Yes, it will be very interesting how our SA based retailers adapt their game plan to deal with competition that plays above the line. Sell price less cost price equals profit, not cost price that has been inflated to accomodate rebates, discounts, advertising and other promotional costs, the only loser in the current equation is the consumer. Going to be very interesting times ahead. Bring it on!

  • Abrie - 2011-06-27 14:06

    Easy. Buying Power. There is a distinct difference in price to a Wholesaler who buys $ 50 million Dollars worth of Fridges from LG, and Hyperama that buys R 5 million worth!! The man in the street will win for a change!!

  • Abrie - 2011-06-27 14:34

    Easy. Buying Power. There is a distinct difference in price to a Wholesaler who buys $ 50 million Dollars worth of Fridges from LG, and Hyperama that buys R 5 million worth!! The man in the street will win for a change!!

  • MaydonView - 2011-06-27 15:12

    lets hope to see change.

  • Badballie - 2011-06-27 15:17

    Fantastic, now we will see the big crooks of the retail business having to put up or shut shop.

  • Ken - 2011-06-27 16:06

    Pity it was only advertised in the Sunday Times. Walmart should place ads throughout South Africa - especially in the community newspapers.

      sharpeijane - 2011-06-27 20:29

      It was in the Sunday Independent as well.

  • Russell - 2011-06-27 18:49

    The best part for us consumers is that they have just announced discounts on game/dion wired prices. But lets wait until walmart announce sales on their own prices, the deals will get even better in time!

      Hayden - 2011-06-28 01:29

      Im a bit sceptic with this Walmart announcement to get the SA raving for better prices. Firstly they are from America & Secondly these monopoly giants in the retail industry are all working together re: wealth power. It certainly smells fishy that a organisation called the "One World Order" is slowly trying to topple the consumers brains. If you dont believe me please google.... "One World Order" Very interesting signs & facts regarding these times we living in. Our countries system is corrupt & not forgetting the world system of trying to decieve people.

  • jabski - 2011-06-28 08:05

    for all you walmart supporters consider this. everything has a price. we have retailers here taking advantage of less competition. but, when walmart blow them all away with cheap chinese goods etc you will start to see the reasons there is so much opposition to walmart all over the world. the price of goods in your trolley is cheaper but the overall cost to the communities is massive. local suppliers are squeezed into submission, small businesses close down etc etc . wages dropped. for anyone who doubts that read "the walmart effect". walmart will be a disaster for south africa. it may take 10 years but if you want US style business practices on these shores you are mad the US is bankrupt and thanks to companies like walmart unemployment is the highest its been for nearly a century. you have been warned

      Dudley - 2011-06-28 13:26

      absolute rubbish I left SA and live in the USA. Walmart is a true success story. THE OPPOSITION TO walmart is from the liberal left and the unions. They create more jobs and pay their staff better than the average wage, and are succesful because they refuse to recognize unions

  • ARTHUR - 2011-06-28 08:10


  • Clare Gooding - 2011-06-28 13:28

    In light of all this Walmart chat, interestingly, Jacaranda FM did a survey of the top three this morning and found Pick n Pay is actually the top brand in terms of affordability.

  • Dudley - 2011-06-28 13:34

    If you expect the African socialist mentality to ever change, you will have a long wait. Get on a plane.

  • Veloci Raptor - 2011-06-28 15:58

    my word.... we are now going to have pictures of locals appearing in Walmart pics - you know which ones I mean!!

  • Werner Botha - 2011-06-28 21:48

    The proof of the pudding is in the eating. I am not holding my breath. What i CAN see though is a clever marketing ploy. Anybody can 'announce' anything, and while the press's focus is on the Wallmart merger an' all, let's use this opportunity to announce 'price cuts!' Here they come!!!

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