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Old 06-02-06, 10:47 AM   #7
Spiderman
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Default Re: ...so it got me thinking

Quote:
Originally Posted by Viney
...as i was buying my new lid at the show. If they can do 'show prices' then why on earth cant they be sold for that price all the time? Blatent profiteering(sp?)

My Arai was £100 cheaper than list. They alsways are, but why not in the shops? Are they still making a profit?
Known in business terms as a Loss Leader you see Viney.

Like the stuff they have outside shops that seem too cheap to be true. they hook you and get you into their shop. Then they hope their "upselling" skills will sell you some other items at normal retail prices and recoup some of the profit they loose on the first item.

Probably something like this, normal markup on item = 30%
loss leader markup = 10%

so yes, still making a very nominal profit but if they dont upsell you other stuff they really do loose out. So make sure you try and haggle a discount for the other items you buy too
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