For example, Porter Roundhouse Steaks at US$2.50 per pound, with the expectation that the sales volume for related items (beer, potatoes, corn, etc) will offset the loss caused by selling the steak at below cost.
You can’t call eBay sales a loss leader, because there are no products sales from which the lost revenue can be offset.
There are only three instances when an experienced manager is willing to use a product as a loss-leader:
* The item is overstocked, and inventory needs to be reduced as fast as possible;
* The item is being discontinued, and they want to reduce inventory as fast as possible;
* There is an assurance that the sales of other products will offset the lost revenue that the loss-leader generates;
but just from this post, I would say that anyone who sells at a loss in the retail business is called a loss leader, and it is done to stimulate the entire business, I cant say that it isnt a good business practice, because I see everyday it is (with large or high volume businesses). I think most people or businesses wish that they can loss lead. I do not get jealous of people who do, I think they are enterprising..I wish I could do it!, but thank goodness ebay or the classifieds exist to stimulate that competition, it is really competition, an who can come up with the better mouse trap, or marketing strategy in this case…wish it was me, oh well…
link to your own private web site would be they are not sure of what claims you might make. You could say, “This product cures cancer.” and then link it to your corporate site. A reputable MLM company in business for many years, was closed a few years back because of claims of the distributors on their own web sites and on radio.
This hopefully prevents that from happening. The question of ebay, is that people put it on ebay and undercut distributor’s prices. It is unfair to the person who is working the business retail or sometimes it is even cheaper than you pay wholesale.
this is timely, its not about Shaklee but a company I am affiliated with. Makes me wonder…if the company does not want you advertising their product, increasing revenue flow, and more retail funds, what is the actual story? Is it just a control issue? Licensing issue? Something that simple?
I wont break into a whine session, but I was told no advertising on ebay, (which was pulled, I understand but I have other questions now) they also said.. no linking back to my private website from the company website, no linking from my private website using the name/words/icon..
so some companies I understand by way of licensing, but if it meant more sales….?
Whats the real story on things that arent licensing issues…like linking etc..?