Subject:
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Re: Help me understand retail sales...
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Newsgroups:
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lugnet.market.theory
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Date:
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Wed, 16 Feb 2000 19:55:50 GMT
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Reply-To:
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rsanders@svic.{spamless}net
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Viewed:
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3126 times
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Mike Stanley wrote:
>
> On Fri, 11 Feb 2000 23:48:21 GMT, "Richard Marchetti"
> <blueofnoon@aol.com> wrote:
>
> > 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?
>
> 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.
I think of retailing as a gamble, albeit an educated gamble based on
all kinds of past historical information & tracking. The actual store
profitability is probably much lower than the 40% differential that we
think of when we compare MSRP to wholsale-cost. I believe that store are
compared one vs the other (within the chain) to see who made the best
return (or usage) of the stores square footage. What a store sells a
Lego item for is probably a small issue in the much larger picture
(unless you happen to be as tight-fisted as TRU).
Ray
--
mailto:rsanders@svic.net
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