Quote:
Originally Posted by Jason14h
Also - I always though milk and eggs , etc were always low margin items because the store wants you to come in and then impulse buy higher margin stuff . (Loss leaders) - is that no longer the case ?
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They're highly negative margin items. Not sure on exact numbers, but usually between $1.00-1.50 lost on each gallon of milk.
It's not so much that you need people to come in and buy higher margin items, it's about price perception. People know what the price is for a gallon of milk everywhere they go, but maybe don't know the price of most other items. If you're the cheapest on that gallon of milk, then people will associate your brand with being less expensive