Quote:
Originally Posted by SteveEisenberg
From what I read there, so long as it was family owned, A&P operated with a low everyday price policy, avoiding promotional pricing. That seems to me to mean no loss leaders.
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If
everyone sells a bit ticket item at or a little below cost, then you do, too. Or you stop selling that big ticket item.
That's retail 101.
Quote:
Originally Posted by SteveEisenberg
There's a story related in the book where a competitor from somewhere in the Midwest wrote to the A&P home office in New York complaining that his local A&P locations were pricing some items below cost, trying to put him out of business. The home office then went to great lengths to investigate, prove the competitor correct, and discipline the local A&P managers.
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I'd be more impressed if they hadn't been using loss leaders in the first place. Also, your example contradicts your claim they never did it.