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Profitable Sales

The use of loss leader items has proven over time to be the key to profiting from a sale; by pricing items below the cost of the item or by pricing items for less than the standard sales amount; when displayed or offered with a companion item increases the probability of getting customers to purchase other products that day or establishing a future relationship.

50% Off a jar of Spaghetti Sauce

Grocery Stores have mastered the art of profitable sales by using coupons and loss leader items to invite customers to visit them to take advantage of discounts off specific items, for instance;  when is the last time you purchased a jar of spaghetti sauce to drink? 

 

Since we know a jar of spaghetti sauce is an ingredient and not the meal, advertising a jar of spaghetti sauce will stimulate thoughts of preparing a meal and will require items such as; meat, spaghetti, and various ingredients to personalize a meal; which leads to additional purchases such as lettuce, salad dressing, garlic bread and maybe a bottle of wine, etc. 

 

 




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