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Subject: 
Help me understand retail sales...
Newsgroups: 
lugnet.market.theory
Date: 
Fri, 11 Feb 2000 23:48:21 GMT
Viewed: 
541 times
  
Hey y'all:

I have read where some people here on Lugnet claim not to get excited about
anything less than a full 40% off sale.  And I don't doubt that people do
occasionally get sales of even up to 75% off original price on Lego sets.

Here is what I don't get: how does a store manage to afford such a sale?

Up to this point it would have been my understanding and expectation that a
retail store paid between %35-50 of suggested retail price for everything they
sell.  If this isn't the case, what is my mistaken assumption and what is the
truth of it instead?  Are stores actually clearancing at a loss because they
make up for it by selling in quantity beforehand at full retail price?
Alternatively, does a chainstore like TRU actually buy at less than 25% full
retail on a given toy?

I should probably know how this works already, but I happen never to have
worked at any kind of retail so I lack any kind of insider information on the
subject.  Nor have I taken any marketing courses, ever!

So DO tell...

Thanks in advance,

Richard



Message has 2 Replies:
  Re: Help me understand retail sales...
 
Richard Marchetti wrote in message ... (...) Actually, up to at least 95% off (the adventurer's blimp set which went for $1 at some Wal-Marts). (...) they (...) the (...) they (...) full (...) the (...) There are several costs to a store for (...) (25 years ago, 12-Feb-00, to lugnet.market.theory)
  Re: Help me understand retail sales...
 
(...) I'd imagine they don't afford it. They take a loss. Wal-Mart and Sams Club take losses on items all the time just to get them out the door. (25 years ago, 12-Feb-00, to lugnet.market.theory)

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