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Some retailers price some products at lost, it those products drive consumers to the store. Say neighboring gas stations sell gas with no profit, and Costco pri
by otherme123 22d ago
Some retailers price some products at lost, it those products drive consumers to the store. Say neighboring gas stations sell gas with no profit, and Costco prices 10 cents less, losing the whole 10 cents. A car holds around 15 gallons, so Costco loses $1.5 on the refuel: but then a good chunk of the gas buyers are now with the car in your store, maybe even with a fresh idea of "fuel is so expensive that I need to avoid needless trips", so "as we are already here, lets buy some things I need".