4 ms·
> which I presume are popular staples like milk/eggs/etc I don't know why those would be what is subsidized. Why wouldn't Costco just cut the prices on the hom
by HWR_14 4y ago
> which I presume are popular staples like milk/eggs/etc
I don't know why those would be what is subsidized. Why wouldn't Costco just cut the prices on the homeopathic medicines to make their target 3% or whatever.
- lotsofpulp 4y agoBecause milk/eggs are what draws people into the store. And their famous rotisserie chicken or hotdog. Standard retail tactic. Once at the store, people might decide to buy things they did not need, or cost more than elsewhere, such as a 6 pack of knives when they only needed one, or turmeric tablets. https://en.wikipedia.org/wiki/Loss_leader https://en.wikipedia.org/wiki/Loss_leader
- HWR_14 4y agoThe rotisserie and the hodogs are clear loss leaders (or maybe just "almost no profit" leaders). I don't believe Costco treats milk or eggs as loss leaders. Google'd comparison sites show that Costco milk, for instance, is more expensive than Aldi or Trader Joe's. And eggs may be cheaper per dozen (maybe) than Trader Joe's but are still more expensive than Aldi's. And you have to buy them in larger batches.