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Larry Denninger's avatar

Most of my career (30 out of 37 years) has been in outside packaging sales, and one thing I never engage in is "loss leader pricing" - quoting one or a handful of products at very low margins to get my foot in the customer's door, while quoting the remainder of their products at healthier margins. Because in due time, I'll just be selling them the loss leader products.

Which proves the maxim "Get business on price, lose business on price." Deep discounting at the retail level is the exact same thing.

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Mary H's avatar

I confess that I am one of those customers who always waits for a sale or a deep discount -- for things that are not immediate necessities. For those that are, such as groceries, I buy certain items only from the stores that have the best everyday prices for them. So cheese is always from Aldi. And when Aldi puts it on sale at an even lower price, I stock up a bit so that I won't have to buy more during the next week or two when prices are back to normal.

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