Stores loose money on Boxing Day sales?

[phi delt reefer]

salt and other heavily marked down items are called "loss leaders" - they attract you into the store with the hopes the client will also purchase other items where they will make up the loss.

when i worked at futureshop (when the original xbox and PS2 were new gaming consoles) - we lost $10 per console when selling them at regular price. Our managers reminded us daily to push additional controllers/memory cards/games/extended warranties with each sale to ensure the department's profitability.

[MarkoD]

Originally Posted by Mrfish55

Any business running on that margin will not be in business for long, commercial overhead is costly, the sales you see this time of year are typical for business looking to unload excess inventory from Christmas, anyone that has ever worked retail will tell you Jan and Feb are usually pretty lean months. That being said it is nice to score a deal or two for those who have any money left after Cashmas.

Sorry what I meant is live stock cost is half of the price. So 100% markup.

My bad

[MarkoD]

Originally Posted by phi delt reefer

salt and other heavily marked down items are called "loss leaders" - they attract you into the store with the hopes the client will also purchase other items where they will make up the loss.

when i worked at futureshop (when the original xbox and PS2 were new gaming consoles) - we lost $10 per console when selling them at regular price. Our managers reminded us daily to push additional controllers/memory cards/games/extended warranties with each sale to ensure the department's profitability.

Lol the "cost" on games was always a dollar less than retail. When in reality the cost is like <20 dollars on a video game

[cuz]

Originally Posted by MarkoD

They lose money on one or 2 products which are "door crashers" and then they rape you on everything else.

Trust me, I sold home theatre equipment for 5 years.

The tv is at cost or just below cost. But the cables, hd box, warranty, etc have a lot of markup

Same thing with fish stuff. Most people that bought 30 dollar boxes of salt probably ended up spending on other things that had markup for sure

so when you were in retail did you do it to make a living or just for fun?
How much of your salary at the time would you have been willing to give back to the customers??

[raceit]

sounds like some people should try being self employed, retail or otherwise. they would learn alot.

[Proteus]

I was quite ****ed. This boxing day sale. I seen livestock that was double the normal price to be marked at whatever percent off. I've seen this on regular days also were the price was bumped one day to be marked on sale at yesterday's cost

[Ross]

Originally Posted by phi delt reefer

heavily marked down items are called "loss leaders"

Just like wing night at the bar...

mmm wings...

[MarkoD]

Originally Posted by cuz

so when you were in retail did you do it to make a living or just for fun?
How much of your salary at the time would you have been willing to give back to the customers??

I did it as a part time job while going to school. But I was money hungry. I would never take a commission hit to save a customer money. I only gave discounts to intice people to buy more.

Sometimes I'd discount a tv 200 dollars to sell a 400 dollar warranty.

Warranty pairs 17% commission but tvs only paid 2%

[fishytime]

Comments like LFSs are raping you are really inflamitory......If you shopped somewhere that inflated their costs just to discount it for boxing day then you shouldn't support that shop...... If you feel that their prices are too high then don't shop there...... There are things like overhead, employee wages, livestock losses that all have to be factored in to the price of everything in the store.... I mean, geez maybe the LFSs shouldn't have boxing day sale if we are gonna get raked over the coals for making money for the rest of the year?.... The sales are for the customers and while yes they still make a profit on some things on Boxing day, other things, they break even or even take a loss on

[MarkoD]

At any electronics store when they show you the cost and tell you you're getting something at cost. It's not true.

The cost displayed on the cost displayed on the computer is padded to incorporate overhead. No one in the store ever knows the actual cost of anything