One of the best deals you can find from any store is their loss leader items. These are the items that they generally advertise below cost in order to get customers like you through their doors. The hope is that you will then buy other items, offsetting their losses and increasing the stores’ overall sales dollars.
You can use this to your advantage by buying only the loss leader items. These are usually marked as “limit x per customer” so they are easy to spot. If you need the item(s) on sale you’re in luck. If you really don’t need those items, you’re not really saving yourself any money by buying them, even if they are below cost.
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3 comments:
Do coupons make products loss leaders?
I'm told that most of the stuff on sale at Fry's they actually lose some money on (at least in some cases). That would be an example of Loss Leading correct?
And I don't think coupons count. Or at least it depends on who there are from.
Sometimes coupons are loss leaders other times they are not. Many times coupons are issued by the manufacturer or producer of a particular product; in that case stores are reimbursed for the value of the coupon plus a few extra cents for processing. These are not loss leaders as the store isn’t using them to get you through their doors. When a store issues coupons in the Sunday paper or elsewhere these are often loss leader deals.
Yes, stores such as Fry’s regularly promote many loss leader products in the ads. I generally buy these products if I need them, otherwise I can usually get better deals elsewhere. (There may be money to be made in reselling these loss leaders on eBay for a profit. I’ll look into it sometime.)
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