I'm just curious, but why are the school supplies so cheap in the summer back to school sales? Doesn't Staples lose money if it sells its 8 pk pencils, pencil sharpeners, etc. at 1 cent? A lot of those things are made in China, but the same things sold in China isn't that cheap, plus there must be a transportation cost from China to US, and some government taxes. But, anyway, if the stores sell the school supplies at a cost, why would they do that?
2007-08-31 21:17:10 · 2 answers · asked by California 1 in Business & Finance ➔ Other - Business & Finance
Its cheap because at that time of year everyone is buying those items, so more profit is made even by selling at a lower price. Plus, if stores run well timed sales, targeted at large markets, they build a better customer base. Even if they lose profit during the sale, they will have gained some new customers that will pay full price for things later on.
2007-08-31 21:25:49 · answer #1 · answered by Lady Geologist 7 · 0⤊ 0⤋
1 c? it's a loss leader then, they make profit on everything else you buy when you get in there. the impulse buys have big profit margins.
2007-09-01 04:37:34 · answer #2 · answered by heart_and_troll 5 · 0⤊ 0⤋