Ever wonder why milk is always at the back of the store? It’s a staple in most American homes, so why isn’t it conveniently up front?
Without even knowing it, you’ve encountered loss leader pricing.
Loss leader pricing is the time-honored tradition of pricing certain items — like bread or milk — below the cost it takes to produce them in order to bring buyers into the store and entice them to purchase other items — like, say, cereal, a candy bar, and some laundry detergent.
It’s a smart strategy, especially since recent surveys have found the average consumer spends $5,400 on impulse buys every year. That’s $450 per month and around three impulse purchases a week.
So, if it’s giving consumers good deals and bringing in added revenue for businesses, what’s the problem? Let’s dig in below.
With many successful implementations under our belt we would be delighted to discuss how PROART Consulting can help you. If you feel that you are ready to take the leap please contact us : +20 100 030 3522 or email email@example.com
LEAVE A REPLY
Your email address will not be published. Required fields are marked *