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Old 03-01-2012, 11:27 AM   #62
stonetools
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Quote:
A year or so back I bought a boxed set of all 14 Fleming Bond books for $25 or so, brand new, at Costco. That seemed like great price to me, but I'm not sure at what price I would have hit the, "it doesn't seem worth it for a bunch of 50 year old popular fiction books", point.
Do folks here understand the concept of "loss leader"? Costco almost certainly LOST money on that deal. It made its money on the OTHER purchases the patron made at Costco.

Quote:
A loss leader, or simply a leader,[1] is a product sold at a low price (at cost or below cost)[2] to stimulate other profitable sales. It is a kind of sales promotion, in other words marketing concentrating on a pricing strategy. A loss leader is often a popular article. Sometimes leader is now used as a related term and means any popular article, in other words one sold at a normal price.[3]
Supermarkets and big box stores (including Amazon ) often use books at loss leaders. You might want to consult the Wikpedia article on the strategy. I bet these books were right in the middle of the store, where you had to pass lots of pricey merchandise to get to it.

Last edited by stonetools; 03-01-2012 at 12:14 PM.
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