Lest you think this is a new tactic, this was Wal-Mart's MO. They are also experts in selling one microwave at cost or a slight loss. That's the one that goes

Lest you think this is a new tactic, this was Wal-Mart's MO. They are also experts in selling one microwave at cost or a slight loss. That's the one that goes on the end-cap and gets advertised in the flyers. The rest of them are the same price (or higher!) than other local retailers. The important part is building consumer perception that they always have the lowest price. Everyone who buys a slightly better microwave pays $5-$10 more than if they bought it elsewhere but thinks they got the best price.