Quote:
Originally Posted by joey2665
There are what’s called “loss leaders”. A high volume product sold at breakeven or a small loss to draw in consumers to purchase other high profit impulse items. A strategy used by supermarkets for years.
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Right I get that concept but at the end of the day if the "loss leaders" are indeed sold at a loss that is not profitable when looking at the particular item in question exclusively. I got to believe that most of the "loss leaders" are sold at no less than actual acquisition cost. As it is overhead for retail is such and margins so tight to stay competitive selling anything at a loss is probably avoided.
Certain retail outlets are in a unique position to where they can take the chance customers will, since they are there, buy more than that one item.