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And they limit the number made each day. If the numbers given in the article are accurate, they're losing about $450 per day on ingredients for this loss-leader
by pjscott 4y ago
And they limit the number made each day. If the numbers given in the article are accurate, they're losing about $450 per day on ingredients for this loss-leader -- and for that price, they've bought fame around the world.
- chii 4y agoBut how does this fame lead to future profit? Do people buy other things (which is profitable) when they can't get the apparently world famous croquette?
- pjscott 4y agoThey're mainly a fancy butcher shop, and I assume they have positive profit margins on the rest of the products.
- doikor 4y agoIt is basically their marketing budget. You could at the same time ask how any advertising turns into profit. Normal retail stores do this all the time. Sell something relatively cheap on a small loss to get you through the door and hope to make it up when you buy something else while you are there.
- gambiting 4y agoNo, I get that, but if you can't actually buy the product, then how is it going to tempt anyone to buy anything else? Like with Costco's hot dogs, I might go in for a hot dog and buy other stuff. But if there was a 30 year waiting list for their hot dogs then I'm simply not going into Costco.
- eru 4y agoPresumably you can order their other products with less of a waiting list?
- numpad0 4y agoI think the real answer is it's a mom-and-pop meat shop and they are not growth oriented. Japanese things that are needlessly world-class and made by growth-avoidant producers is not unheard of.