this seems like a loss-leader scheme to me
2006-06-05 15:22:57 · 25 answers · asked by pretzelman5000 2 in Food & Drink ➔ Other - Food & Drink
It is a loss-leader, with the ultimate goal of trying to get consumers into the store to purchase both the ice cream and other groceries. However, it's not a "bait-and-switch" scheme, which advertises a low-priced item and then pressures the consumer to purchase another higher-priced product. It's no different than a sale with weekly specials, so nothing illegal about it. And by the way, as an ice cream lover, just where is this store?!?!?!? :)
2006-06-05 15:28:38 · answer #1 · answered by besoseda 3 · 4⤊ 0⤋
If the icecream company is a new comer or if it launches a new kind/flavor, Yes, there are many companies did this kind of promotion to enter the market => introduce themselves to the consumers. They won't make any profit from that promotion, of course, and this is called "entrant fee".
If it's not a new comer, or did not launch new kind/flavor, there are reasons to have such kind of promotion. For the product that has short shelf life, it's better to have a fast movement of the stock => this promotion is the way to boost up the movement. High inventory for product that can not sell is a loss of money. To gain profit on this buy 1 get 2 free, the grocery store might up the price to cover the cost of three icecreams. Anyhow, the price much be cheaper than buying 2 icecreams. So this icecream should have a very high margin => don't buy at its regular price.
2006-06-05 15:41:48 · answer #2 · answered by yui_inter 2 · 0⤊ 0⤋
Loss-leaders aren't exactly schemes. There's nothing that says you have to sell things at profit. The grocery store is expecting you to come for the ice cream, and stay for everything else you need which will be sold at profit.
If you don't like the grocery store, buy nothing but the ice cream.
2006-06-05 15:26:40 · answer #3 · answered by smartliketractor 4 · 0⤊ 0⤋
The point of a loss-leader is to get you into the store, where they hope you will buy other things on which they do make a profit.
2006-06-05 15:25:34 · answer #4 · answered by just♪wondering 7 · 0⤊ 0⤋
It's usually not the "sale" items that brings in the profit for the store. It's all the other stuff you pick up when you stop in "just for the ice cream on sale".
2006-06-05 15:26:08 · answer #5 · answered by fiestyredhead 6 · 0⤊ 0⤋
That is the way that they buy them from their supplier. The supplier. For instance if the supplier delivers 20 units the charge the store for only 10 units providing that the store sells them as a 2for1 offer. The manufacture will absorb the cost. This is called a promotional offer.
2006-06-05 15:29:32 · answer #6 · answered by bullticky 5 · 0⤊ 0⤋
They sell in bulk. The sales come down from the distributors. It's all about supply and demand. They figure if they give away a few cartons of ice cream, more people will shop there and likely spend more money.
2006-06-05 15:26:48 · answer #7 · answered by jaike 5 · 0⤊ 0⤋
They don't they are trying to break even but get rid of there inventory. I say just buy what you want if you like the product and screw the store. But on the other hand you know that store is normally charging you 3 time then it costs them.
2006-06-05 15:26:27 · answer #8 · answered by delhijoker982001 2 · 0⤊ 0⤋
Its simple. I buy Ice cream for 10 cents. I sell you ice cream for 25 cents -- but you can buy two, and get one free. I still make 5 cents.
2006-06-05 15:26:33 · answer #9 · answered by Blim 5 · 0⤊ 0⤋
They hope the customer will buy ice cream cones and some toppings to put on their ice cream, and maybe pick up some slimfast while they're at it.
2006-06-05 15:26:34 · answer #10 · answered by McNeef 4 · 0⤊ 0⤋