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Prodigal Son
Why do supermarkets sell some products below cost price?
Thank you so much for your help :)
                     
 




jods2001
Rating
It is known as a "Loss Leader"

They'll advertise the product locally / nationally at a very cheap price to tempt people into the store.

Of course, once the customer is in the store, they'll most often buy other goods / services which are going to make the store a decent profit. It is happening ALL the time.


AlienCat
Rating
They are called "loss-leaders" and it's basically to get you in the door. They make a loss on one or two products and profit on all the rest.


Lovely Rita Meter Maid
Rating
usually when they are approaching the sell by date supermarkets sel items off cheap.


jaha
so that they can get the customers as well they can get profit out of other items.........


DeeDee
to lure you into the store, and then most people will also see other things they need and buy them at regular cost.


tra
Rating
maybe they have a high stock of them and they are going out of date soon or they are just not popular and hard to shift?


Doug
Rating
Because that way they can attract more people into their stores and once these people are in the store it's more likely that they'll buy other stuff.


Jane Doe
Rating
Usually Wholesalers will sell cheaper to a supermarket who buys in bulk.... so the more they buy, the cheaper they get it at their cost! :)


Cherrypicker
Rating
It is the hook, to entice shoppers into their stores. Often it is items that are not staples and they make up for that by buying in bulk and charging more for other grocery items. Believe me, they are not benevolent societies.


Polar Molar
Rating
They maybe old stock or they just want your business. If they get you in there you would probably buy more then one item!♥


Ariana
Rating
I think its to do with the goods being near there sell by date . Plus once the customer gets lured in they are tempted to buy other products. Thus increasing the supermarkets turnover.


Nicola H
So that we enter the shop for the cheap things and end up buying expensive things 'we do not want.' I do this all the time I set out to buy milk and come home with flowers, a cake, a DVD player ...


jahoo
Rating
perhaps in order to lure in my buyers and trap them in their pyschological store with so called bargains and get their buyers to buy more and more stuff than what they need like if i buy two cans of tuna i save 7 p wow , i find it fasinating the amount of pschology used in supermarkets but yeah id say to lure people in with a lower price than their competitors


pearlywhites
Rating
to exterminate rivals,hence having more monopoly power,They are able to cover costs buy gaining loyalty (headcount) so customer buy other products


mastor
all the other answers are possibly correct but also it could be a way to get red of the other competitive at the area where the super market located specially if this supermarket is strong enough to keep going at the market moor likely than it;s competitive(s) at the area where it located


tinaholt@btinternet.com
they rely on impulse buyin to recoup there losses


Toni Angel
To lure you in so that you'll do your shopping there. And it usually works. Hee,hee. You're welcome. :D


♥ Beaver Diva Sue ♥
Rating
To entice you in and hope you'll stay !


Emily: The TBS Obsessed One
b/c suprmarkets want bussiness, not to be fair and follow the rules.


FM is going away.
Like my favourite shop "Home Bargains/ Quality Save, they have a load of stock delivered from the manufacturers and sell it dirt cheap. Their Easter Eggs have been 1/2 supermarket price this week and I've taken advantage of it. It must be an overload of stuff that they can't get rid of and so sell it off to shops cheaper. I've noticed that Easter eggs are ridiculously cheap this year, they only sell them at reduced cost after Easter to get rid of overload.


davidm9870
to entice you in, then you buy other products. It normally costs me a fortune...


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