posted on Nov, 5 2006 @ 08:13 PM
Sure Wal-Mart and Target may lose money on the drugs they sell for $4.00. But both figure this deal will lead people into their stores to spend money
on other things which will more than make up the loss on prescription drugs. For those of you who doubt this, LOOK AT YOUR LOCAL SUPERMARKET!!!
Everyweek they have an Item, They think people want at a price where they may lose money, but guess what?? They are betting on the majority of
people, doing the rest of their shopping at the store. Where they make back that loss plus more.
Yes you will get the "SMART" people who will only buy what is on sale. But you will get a larger majority, who go for the 1 or 2 items and do the
rest of their weekly shopping. This is where the store makes it's money. Believe me,, after spending 10+ years working in a grocery store, the
store is not going to offer a promotion were they lose money. Can it happen, YES! And if it does, they will think twice about offering something for
a loss again. But they are betting on the majority of the people coming in to purchase the "loss" will spend money on other things. This is where
they make up the difference.
While most consumers come into a store feeling they are going to save "X" dollars on the sale items. What they don't realize, is that they are
paying more for the everyday items they pick-up there along the way for the convienence. No store is going to go out and suffer a loss (Possibly a
big one) unless they make their money back some other way.
Here is the perfect example....With Thanksgiving coming up, stores will be willing to sell TURKEYS at a loss. Why? They are betting on you will do
the rrest of your Holliday g there for convience. While you may be saving, say 20-30 cents per pound on a turkey. You are paying that much more, on
everyday items like milk and bread. While the competitor may have a slightly to somewhat higher price on turkeys, their everday prices on milk and
bread,,, etc. are a good bit lower.
While a lot of marketing figures goes into this, if a store/chain losses big, they will not do this again. A smart shopper will know where they get
the best deal on everything they need. And as long as they have the time, they will go to store and store, and buy what is on sale and save money.
But if they are looking for convienence,, then the store will not lose out.