The loss leader

Studying economics in College many moons ago, I was fascinated a term used by the professor. "Loss Leader". Although my Professor used to drone on for hours, I did remember something. Supermarkets pioneered this in order to draw customers into their store.  Offering something way below cost price that was popular, in need and colourful to advertise was the key. Washing powder, cornflakes and butter drew in the crowds. Once in, customers were then up-sold vigorously. It happens all the time in retail stores so now is the time for…

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Reducing the cost of sale

I'm sitting in the First Class Lounge at Paddington Station in London after a couple of meetings in the capital. The lounge is designed as a comfortable haven for passengers whilst they wait for their train to arrive.  You have biscuits, cake and coffee available and comfy seats as well. Looking around the place is full of business people, on the phone, using their laptop, filling in their waiting time productively. I guess most have been in meetings today and are travelling home like me. The lounge is First Great…

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We can’t persuade people anymore

I love a good TV commercial advertising cars. Sleek lines, colours, speed, motivational music as the car floats along the highway. But a recent commercial for a major car manufacturer didn't harp on how wonderful the car was, the fuel consumption, the green credentials. No, it directed buyers to a website where they could find hundreds, if not thousands of reviews of the car from other people. People they could trust. In the old days we had to persuade people to buy, to convince people to make the purchase. We'd…

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