 | | New York Times on Walmart Pricing
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Today's (23 December 2003) New York Times has an interesting article on Walmart's effect on the toy market -- pushing toy-specific retailers to the brink. General thrust is that Walmart and sometimes Target are selling numerous toy items below their (...) (21 years ago, 23-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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(...) Ah, yes, the ever wonderful science of a "loss leader"...sell one thing at a loss to lead others to buy more stuff....get the kids to buy toys while mom gets milk, bread, eggs, cookie dough, wrapping paper, etc, yadda yadda...as opposed to (...) (21 years ago, 23-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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(...) And of course the trick is to buy lots of the loss leaders (if they're something you want) while resisting the temptation to buy other stuff. One good (but not infallible) giveaway is when quantity is limited, there's a fairly good chance it's (...) (21 years ago, 24-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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Arguably, WalMart and Target are just getting their revenge on TRU etc. After all, companies like TRU are known as "category killers" whose business model of having the largest range of products in some category, and is antithetical to the "variety (...) (21 years ago, 24-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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I read a similar article in another publication about a month ago and it upset me then. I think it was in Newsweek. Anyway, it upset me because the reporter must have been an idoit! The phenomenon of the "loss leader" is a myth! Yes a Myth! I (...) (21 years ago, 24-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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(...) snip (...) Another factor involving big-box retailers is shelf-space spiffs (from the manf to the retailer). I'm pretty sure that WM charges for prime location end-caps. The manf's prolly pay WM off in extra product rather than real dollars. (...) (21 years ago, 24-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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(...) Snipped a lot of good info. Most of which I agree with. However I do NOT agree that there is no such thing as a loss leader. Case in point. I went to Best Buy on Black Friday. They were selling DVD players for 19 dollars after rebate. Many (...) (21 years ago, 25-Dec-03, to lugnet.market.theory, lugnet.mediawatch)
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| | Re: New York Times on Walmart Pricing
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(...) I once (politely) complained to a Best Buy employee about their fondness for rebates. He agreed, and said that customers claim only about 40% of possible rebates. On one level that irks me, but in another sense I am glad to have that 60% (...) (21 years ago, 26-Dec-03, to lugnet.market.theory)
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