Quote:
Originally Posted by MarkoD
Boxing day isn't for making money. It's for building brand awareness and brand loyalty. So that the customers that you satisfied on boxing day will come back many times over the following year
if i had a store of any kind, i'd sell everything at cost on boxing day. take as many customers as possible from the competition.
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I'd hate to say that, but I totally disagree.
The prime example is Big Al's Salt special. They use it as a loss leader, but many of the customers that showed up for it did not buy anything else. I was there in the morning and I saw a lot of people that would not shop there normally any other time of the year.
We can lower prices when our suppliers give us special deals (drystock), during holiday times, as they want to reduce their stock. Livestock prices almost never fluctuate during the year.
As for a store that increases prices just before these sales to show the special markdowns, buyer beware.
As for markups, they are needed to keep all stores in business. There are too many expenses to even name, everone gets a piece of the pie before we even see the products. A good guestimate of operating costs a store needs to make is at least $500 a day (Profit) to break even per day.
I remember this time last year, a canreefer said they can bring in pepermint shrimp and sell the from his house for $2 each, I told him I'd buy 500 alone for my store. That sale never happened, I wonder why?
LFS's are completely different than any other retail outlets, other companies can close for a week and do nothing and their inventory remains the same, try that with a LFS and you walk into a room as if someone just stolen from you. Apples and oranges people
Just my opinion..
Ken - BWA