Quote:
Originally Posted by prashamk
How can that be called as "Revenge"? They don't do anything for loss. Maybe they aren't making profit but they won't sell anything for loss.
I don't know about western or european countries, but for super marketing in India, everything they have on their shelfs is being taken on credit from the companies producing it. Generally they have 60-90 days payment terms for whatever goods they sell. Moreover many products are returned to the producers if they can't sell it.
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If it is a perishable, the supermarkets have 2 choices. It can be sold or it can be thrown out. The closer the product is to the use by date, the more likely it will have to be thrown out generating a loss for the supermarket. At this stage any price is a benefit, even if it is less than the wholesale price.
Supermarkets also deliberately sell products at a loss. It a practice called "loss leaders". It banks on normal human behaviour. Humans will be attracted into the supermarket for the loss leader and will be tempted to buy a whole lot of other stuff once there.
Supermarkets now have another marketting device. They provide a few cents off the price of fuel. People now buy more expensive products in supermarkets so that they can get a small discount on fuel. Typically, the supermarket makes a small loss on the fuel to its regular customers, but more than makes that up with the few cents extra on groceries.
Welcome to the wonderful world of marketting!