Mark @ Everlast
Advertiser
Watching the price respond as it did, I imagine they took a look at their sales overall with us and decided to create a true loss leader. This is not uncommon. At Christmas, I bought one of those 32 inch LED TV's from Walmart for 98.00... and an accompanying LG blue ray player for 29.98. They are now stacked high in my local store and selling for 198.00. It's a decent 720 screen and has worked well so far. I know they maybe sold a million of these at that price nationwide as the store I went to had 150 in stock and sold out in an hour or so. Profits were much lower or non existent, it brought people in to buy. Did they have to go down to 98.00 to create sales? No, they could have gone down to 125.00 and it would still have sold nearly as many but they did and it drew in other business and sales. It didn't have to create large revenue itself. Did I feel guilty? Not in the least. I didn't even push or shove anybody. I got there early, but not too early and stood patiently inline until I was handed my "ticket". Someone didn't get one at that price, but as long as you were in line by a certain time, they guaranteed you'd get it before Christmas even if they ran out. I don't know if it was a mistake now seeing how the volume brought the price up. But if it was, I imagine it wasn't the first time. I know on our side, that would create a more significant and costly loss for us.