2007-08-14 01:31:05 · 8 answers · asked by Cynthia S 3 in Business & Finance ➔ Other - Business & Finance
some of these offers are just loss-leaders - they attract you into the store with them, then you spend money on other things, so it's worth them losing a little. However, on the whole, it's about the tiny margins they pay their suppliers - they can afford to give one free because they are making such large profits to begin with.
2007-08-14 01:37:17 · answer #1 · answered by SLF 6 · 0⤊ 0⤋
Ever heard of "addictive variety personalities" ? they choose you to get addicted to the style and then they gained't purely quit the two for a million software. they're going to enhance the cost by utilising 30% you think of I shaggy dog tale right here?? Do you very own observations.. watch for a sparkling product... be conscious the cost for a million unit. wait a million twelve months and then pass to numerous shops and pc the common cost. If its no longer 30% greater then the product ought to rather style like horse dung and that's going to be pulled quickly. And if its no longer a sparkling product, there can purely be 2 different motives. a million) revenues have been falling and that they could like the masses to alter into re-addicted. or 2) it is revenues are super meaning the "habit ingredient" is firmly in place and that they use it as a frontrunner to entice the masses into the shop to purchase different junk.
2016-11-12 07:15:26 · answer #2 · answered by ? 4 · 0⤊ 0⤋
They sell more product because you are forced to buy two of something instead of one. The markup is greater thatn 50% so they make some profit and they make it up somewhere else.
2007-08-14 01:36:41 · answer #3 · answered by hirebookkeeper 6 · 0⤊ 0⤋
Supermarkets compete against each other, and they need to lure you into their supermarket. Once you are there, you are likely to buy a few things.
2007-08-14 01:36:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They could be "Loss Leaders". They do actually lose money on these or they don't make much at all. They hope to compensate by selling other items.
2007-08-14 01:35:34 · answer #5 · answered by hulahoops 3 · 1⤊ 0⤋
They make their money on the expensive high margin items, like frozen pastries.
2007-08-14 01:35:06 · answer #6 · answered by regerugged 7 · 0⤊ 0⤋
They make money on the staples.
Have you ever seen milk go on sale?
2007-08-14 02:33:29 · answer #7 · answered by joe s 6 · 0⤊ 0⤋
I think they break even on those products, but count on your buying of other products that are not on sale.
2007-08-14 01:34:57 · answer #8 · answered by I<3ct 3 · 0⤊ 0⤋