Quote:
Originally posted by johnnymysto
I don't know what you mean. School me, por favor
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Loss leaders are the give aways, I sell it at a loss knowing that i will gain profit via other markups.
That's how come Walmart can undercut some sales because they will sell something at a loss knowing you'll walk out buying something with a higher profit margin.
Easiest case to point out. XBox/Playstation. MS and Sony lose money each time they sell one of the units, but they make it up on the other side each time a game is made as it needs to have liscensing to run on their machines, so they get a piece of that sale.