Most people don't understand loss leaders either. All the big chains have them, like the 99 cent 2 ltr name brand pop, which they actually selll below cost to get you in the door. Smaller retailers can actually buy product at superstore/wal-mart cheaper than their wholesaler. There is no way they can compete and they don't even try, but the perception to the consumer is that they are way overpriced when they are selling at msrp.
Canadian Tire is really bad for that, as most of their stores are privately owned, and the retailers have no control over the flyers, and all those awesome deals end up costing them money.
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