Stores loose money on Boxing Day sales?

[MarkoD]

Originally Posted by 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

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.

[Lampshade]

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.

The only part against this is that there's little competition on boxing day. It's not like the futureshop/visions, etc that have one every block. Pretty much everyone in the lower mainland was at JL's or King ed's, then headed to either OA or OC. So as long as you're not out to lunch on terrible prices, a 10% off would draw people in just as much as a 20%+. This boxing day i spent a couple hundred bucks on random crap, and figured I'd saved about $40, definitely staying home and shopping online next year.

[Nate]

So many assumptions made in this thread. Ive been on every side of this industry and it really is amazing at how some of these stores keep their doors open. Margins on many items are ridiculously low.


Some People are throwing numbers out there without seemingly having a clue.

[paddyob]

I Would like some loose money. Lol

[MarkoD]

Originally Posted by Lampshade

The only part against this is that there's little competition on boxing day. It's not like the futureshop/visions, etc that have one every block. Pretty much everyone in the lower mainland was at JL's or King ed's, then headed to either OA or OC. So as long as you're not out to lunch on terrible prices, a 10% off would draw people in just as much as a 20%+. This boxing day i spent a couple hundred bucks on random crap, and figured I'd saved about $40, definitely staying home and shopping online next year.

But stores should be completely for customer loyalty. There's about 6 LFS in Edmonton and I basically deal with one of them now. A year ago I would spend a whole day driving around to all of them trying to find one I liked and trusted

[reefme]

Stores won't loose money, they just don't make enough money. If every buy that much every day they don't mind to sell for that price.

[Nano]

Originally Posted by paddyob

I Would like some loose money. Lol

I didnt even notice that

[paddyob]

Originally Posted by reefme

Stores won't loose money, they just don't make enough money. If every buy that much every day they don't mind to sell for that price.

Yup. They call these products loss leaders. It's more about market share and over all movement of stock. Some products have little to no profit, but chances are, once in the store, you will buy another product as well.

[Mrfish55]

Originally Posted by MarkoD

So that the customers that you satisfied on boxing day will come back many times over the following year.

Having worked in retail for too many years I can honestly say you get more P.Od customers from Boxing day than you do happy ones, long lines, limited stock, cranky customers fighting to save a few bucks, like I mentioned before, the sale is just a good opportunity to unload excess Christmas stock and make room for new product. Personally I hate boxing day shopping, I will pay the extra few bucks and avoid the crowds or shop online.

[MarkoD]

Originally Posted by paddyob

Yup. They call these products loss leaders. It's more about market share and over all movement of stock. Some products have little to no profit, but chances are, once in the store, you will buy another product as well.

I saw the loose thing but didn't wanna be a douchebag today. But yeah what you said is exactly it.