Students can save between 20 and 40 percent by shopping at retail giants Kroger and Wal-Mart instead of the Ohio University markets, a Post investigation has found.
In a price comparison of 15 common grocery items from the Ohio University markets, Wal-Mart and Kroger; Wal-Mart had the lowest price in almost every category, and Kroger's basket of goods was about $10 cheaper than a similar basket from the OU Markets at Nelson, Shively and Boyd.
The total of 15 items - which ranged from Glade Aero Tropical Mist to Heinz Tomato Ketchup and Pepsi products - showed that the Wal-Mart prices, on average, were nearly 30 percent less than those of Kroger, and 40 percent less than those at the university markets.
Certain products' prices were especially skewed in favor of the grocers. A vanilla Hunt's Snack Pack pudding cost 97 cents at Wal-Mart, $1.79 at Kroger and $2.15 at Shively Market, which has the same prices as all other markets on campus. This equates to a 55 percent saving at Wal-Mart and 17 percent saving at Kroger compared to the markets.
Richard Neumann, director of dining services at OU, said the markets charge because they do not have the purchasing power and the sales volume that larger corporations possess.
It is not fair to compare the prices in the market with Kroger or Wal-Mart as these stores have much greater purchasing power and sales volume than the markets
he said. That is why Kroger and Wal-Mart are able to offer better prices.
But some products - notably Broughton milk - are actually cheaper in the markets than in the retail-giants because of OU's immense purchasing power. Neumann said the university purchases all its milk - for both the dining halls and the markets - from the same company, and this helps the school get a lower price.
Neumann said most of the markets' prices are set by Goldsmit-Black, OU's primary vendor, which compiles pricing data on all convenience stores in Southeast Ohio. Products not provided by Goldsmit-Black are priced according to the manufacturer's suggested retail price.
Additionally, Neumann said OU performs its own market comparisons with other convenience stores in Athens to ensure pricing stays near the median.
But regardless of the price discrepancy between the Ohio University Markets and the larger retailers, students are still frequenting the campus convenience stores. Last year, the markets completed 626,883 transactions, Neumann said, and in the 2005-2006 budget, Bobcat and snack bar sales is listed as generating more than $1 million in revenue. This figure includes transactions at the markets.
The total budget for the residence dining halls for 2005-06 is $16.4 million, which includes the markets. The budgeted amount for the markets is $1.8 million.
Junior Jonathan Buckoski said he uses the market for small purchases.
(The markets) are kind of like an overpriced convenience store he said. If I wasn't using a meal plan I wouldn't shop here. Customers are also drawn to the markets by their convenient location on campus and acceptance of super-meal plans and Bobcat cash.
I would say 90 percent is Bobcat [cash] or super plans
said Chelsea Ballint, a sophomore, who has worked in Shively Market since she came to school last year. Ballint also said that most of the students who use Shively Market usually purchase only a few items.
17
Archives
Justin Thompson
20050928475midsize.jpg
Brandon Erickson, a freshman at OU, watches as Sarah Phipps rings up his order in Nelson Market on Saturday. Erickson, like many other students, was there shortly before 7 p.m. to exchange his leftover meals for groceries.
