Digger: Black Friday = Loss Leader
Digger:
Alot of the items we sell on Black Friday are tied to an “Dealer
Credit” with the vendor — if
we sell the unit on Black Friday then we
get a certain $ amount back for all sales of the item that day. Example — Samsung Blu Ray player - I purchased at $172 each for
Black Friday, sale price of $149.99 — dealer credit of $25 for each
unit sold, leaving me a profit margin of $2.00 — So no sale on Black
Friday = having to try to get the higher retail of the item later. Even
at the same margin we’re still only at $174.99 = $25 off (which isn’t
a bad price for the unit in question.) Black Friday is a loss leader for retailers and I’ve never
understood the concept. But, its a necessary evil, especially when you
are a franchise of a national chain because they’re advertising for the
corporate stores. Oh well, it is what it is and we move on.
Question: Which item was your best buy on Black Friday?
* This story was originally published as a post from the blog "Huckleberries Online." Read all stories from this blog