Stores loose money on Boxing Day sales?

[ScubaSteve]

Alright, here's my two cents...

I used to be a distributor for snowboards and wakeboards. If you own either of these products, it probably passed through my hands. I also had my own shop which I sold out of, so I know how pricing works at both ends.

I can't speak for LFS mark ups as they have very high losses (imagine if that goldflake angel you just ordered in kicked the bucket...) and they different business models but, in my industry, every time a product changes hands it doubles in price. If I bought a board from the factory for $100, I'd sell it to a shop for $200 and they'd sell it for $400. This is rough numbers but gives you an idea. Some products, especially the small one people buy a lot of (like skateboard wheels and bearings) have much higher mark ups.

For boxing day I'd get pretty good deals from the factories, which I'd pass on to the dealers. The factories want to clear out stock for the next model year and, since no one is buying wakeboards in the dead of winter, I was also generous on my pricing. So the shops do see savings for this reason.

There is also the whole thing of selling in bulk. Though I was selling m product for less, there are so many people buying on boxing day that I would make up for it through volume. Boxing day for my shop was often more profitable than the entire preceding holiday season and I'd make enough money to make-up for the sales doldrums that follow Christmas.

So, it really depends. Most shops aren't going to be losing money but they don't necessarily make as much on each product they sell, but they make up for it through volume.

[reefme]

Originally Posted by ScubaSteve

Alright, here's my two cents...


So, it really depends. Most shops aren't going to be losing money but they don't necessarily make as much on each product they sell, but they make up for it through volume.

+1 That is what I am trying to say.

[MarkoD]

oh yeah. my original point:

having a doorcrasher item which is below cost will bring customers in the door and give you the potential to up sell them or sell them additional things and build a rapport with them. Opening the door for future business.

this is not an argument and you dont have to respond. this is my opinion and if I had a retail store I would run it this way.

[Madreefer]

Why is'nt this thread in the lounge?

[Nate]

Markod

Where did you get your numbers for 30 % and 50% then and how does this back up the original point you stated on page 5?

[MarkoD]

page 5 was the previous page.


and what i said on page one was

"I think it's more like 30% on dry goods and 50% on livestock"

but i later corrected myself

[unclesalty]

If anyone thinks stores lose money on boxing day sales I have a couple extra bridges I will sell them! lol

[quote=unclesalty;665424]If anyone thinks stores lose money on boxing day sales I have a couple extra bridges I will sell them! lol[/quot

I'm happy to see you own bridges, in BC at $3 to $5 a car you could make some serious money.

Unless you own a store in my industry your opinion is just that, your opinion.


Wendell

So you know, I'm available anytime to consult on the big money to be made in the Salt Water Aquarium Industry...until then im just hoping to find people who own bridges to keep buying.