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I’m betting stores are given a floor price/cost and are given the flexibility to raise above that up to 10 cents cheaper than the nearest competitors in the spe
by Aboutplants 2mo ago
I’m betting stores are given a floor price/cost and are given the flexibility to raise above that up to 10 cents cheaper than the nearest competitors in the specific area. All stores do not have the same ability/flexibility
- otherme123 2mo agoSome 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".