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i hate how the term 'loss leader' is bandied about like i'm meant to feel sorry for them so generously losing money on something when at the end of the night it's obviously one transaction for everything with a healthy amount of profits baked in
What else should it be called? I don’t think there’s some moral responsibility placed upon the patron to make up for the loss, even with that name. It’s a gamble for the business that is usually thought out and is intended to lead to an increase in profits overall due to margins baked into items that aren’t on promo.
Sure, it’s considered poor taste to come to a restaurant solely for the free bread and some water and then leave, but it’s completely fair game to take advantage of a loss leading promotion like “endless shrimp” or Costco’s $1.75 for a hot dog and soda. The loss leader gets you in the door. They have other strategies to make that loss worth their while. If you walk in and pound more shrimp than Red Lobster can cover with the margins on the rest of your ticket, that’s their fault not yours… the house lost that bet.
$1.50, and the CEO will kill you if you try to raise it.
I heard they have monthly death matches in the garden section after midnight
But think of the shareholders and CEO. Won't someone please think of the shareholders and CEO?!
It's not meant to make you feel sorry for them and in fact it's an illegal tactic in many places
What places are those?
Belgium. You are not allowed to sell any item at a loss. Fire example Ikea had to increase the prices of its restaurant and a supermarket that did a 3 for 1 promo got in trouble.