Sunday, November 8, 2009

Loss Leaders Bring Home The Bacon (well, actually turkey) This Thanksgiving





Monday Morning Post


Serving a traditional Thanksgiving feast at home is the most economical meal of the year.

This year, the average cost for a home cooked dinner of turkey, cranberry sauce, green beans, sweet potatoes, rolls, salad and pie to serve ten comes to about $40.00. That's only $4.00 per person. Surprised?

At Thanksgiving, grocery stores battle each other for your business pricing the most popular foods way below cost. Even turkeys are priced too cheap to believe. This marketing technique is called a loss leader by the industry.

By deliberately pricing certain items ridiculously low, they'll tempt into their store. Once you're in, you're going to buy lots of high profit items to make up the difference.

Beer and wine, artisan breads, ice cream, salad fixings, paper plates, aluminum foil, butter, fancy hors d'oeuvres, center pieces - and you'll probably get a jump on your holiday baking by buying cookie or fruit cake ingredients. That $40.00 meal for ten is dwarfed by the hundreds of dollars of groceries in your cart. It's a very effective sales technique.

If you stick to your list and avoid the temptations of seasonal displays and free samples, you'll win the grocery game this Thanksgiving.

So gather your loved ones around the table for this truly American holiday. With a little planning and by taking advantage of those wonderful loss leaders, you'll spend less money than you think - and that's a good thing in this economy.

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