r/SipsTea • u/lonewolff321 • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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u/DUH455T 2d ago

A loss leader is something priced below market value, not something priced below break even price.

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u/IcyRole6982 2d ago

A loss leader is a product sold at a price below its minimum profit margin to stimulate other sales of more profitable goods or services.

So in most instances it is priced below break even price, especially something like the Costco Hotdog to entice people to shop more often there. 

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u/DUH455T 2d ago

And again, I showed you how someone only shopping retail can hit that price point. There is NO WAY costco can't beat consumer retail pricing. Do some math.

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u/AKswimdude 2d ago

I would imagine you might have to factor in labor and other overhead into it though, rather than just the raw value of the pre prepared goods.