Because of
loss-leader pricing, Blockbuster's increased sell-through presence--although it may help the chain become more competitive--won't help its image on Wall Street.
Kim Motika, vice president of North American sales for publisher Interplay Productions, said
loss-leader pricing increases returns.
These holiday
loss-leader tactics may prove to be a two-edged sword for dot coms in 2000.
In which case, the scanners should be considered as
loss-leaders.
He pointed out the Chatham-based gang used sales techniques like two-for-the-price-of-one
loss-leaders to keep junkies hooked - and loyal.
He says: "Our biggest competitors are supermarkets, who are not only use the price as
loss-leaders to bring people in but also encourage people to drink at home.
They also challenge the motives of free ISPs linked to retailers such as Dixons Freeserve and TescoNet, claiming the services are used as
loss-leaders to direct users to their home-shopping sites.
Martin Swaine, the boss of off-licence chain Rhythm & Booze, has called on the government to ban
loss-leaders on alcohol following the collapse of Threshers into administration.
However, Maxwell insisted that the Scottish parliament had the power to ban
loss-leaders.
Our aim is not to offer
loss-leaders but sustainable prices.
Factors such as bulk ordering, gray-market supply, high shipping fees, clear-outs and
loss-leaders can all influence retail pricing.
1) Spats between retailers about boozy
loss-leaders.
