Quote:
Originally Posted by elcreative
I said that a free book is a lost sale... it is... it may lead to other sales in the future or it may not but at the instant that a book is acquired for free then it isn't being purchased... simple English... sale = exchange of value (usually money) for item being sold, no exchange then no sale...
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No. That is not what "lost sale" means. "Lost sale" does not mean "Ana isn't buying something", because if that were true, BILLIONS of "lost sales" would be going on constantly around Ana -- I'm not buying any shaving cream at the moment? Lost sale! I'm not buying a hot pocket right now? Lost sale! Ana got a promotional copy of Oreo Cakesters in the mail to review? LOST SALE!!
"Lost sale" means "Ana isn't buying this thing
but she otherwise would have". That is why a freebie ISN'T
necessarily a lost sale. In order for a sale to be "lost", it had to be possible/probable in the first place.
There are two options for freebies:
1. Consumer A would have bought Konrath's book at $2.99 but notices that it's free this week and snaps it up. THAT is a "lost sale".
2. Consumer B would never have bought Konrath's book at $2.99 but notices that it's free this week and snaps it up. That is NOT a "lost sale" because the "sale" was never, ever possible.
Then there's the related:
3. Customer C would have bought The Help at $6 but not at $10 so goes off to buy something else instead. That is another version of a "lost sale" on the part of the snubbed book, but it's a gain for whoever did get the money.
"Money didn't exchange hands" is
not a lost sale. "Money didn't exchange hands but it would have if things had been slightly different"
is a lost sale.