I was looking through a catalog from a competitor (of my retail business) yesterday and found some items at a price which surprised me as they were considerably lower than our cost price. Same brand and model. The low prices were wrapped in text suggesting that everything is the store was just as keenly priced.
I checked the store and the savings were genuine. But on those items only.
Okay I understand the concept of loss leadership.
I doubt this is loss leadership. My understanding is that this is big business arrogance – demanding rebates and special offers from suppliers in order for their brand to continue to be carried in the national chain of stores. In return for continued stocking they provide an exceptional price which allows the store to offer the price.
Okay, that’s business.
If you price compared this store every day of the year I bet you’d find the products in my small independent retail store and the independent retail stores my software company serves loiwer overall. This group does not “SELL FOR LESS” as they claim.
Sure I don’t match their exceptional deals. What I do match is the day in day out pricing and service obligation.
Sadly, independent small retailers don’t have the money to advertise this message to consumers.