Home & Garden3 mins ago
Are the perfumes in...
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places such as Wilkinson's the genuine thing? Popped in yesterday, and noticed they were selling some at very low prices. My friend thought they'd be fake, but are they?
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For more on marking an answer as the "Best Answer", please visit our FAQ.The profit margins on perfumes is massive, so stores like Wilkinsons can afford to sell them at a low price, and still make a profit, or they may even decide to sell them at a loss.
This is common in retailing - the product sold is called a 'loss leader' and the company abosrbs the loss because it encourages customers into the store, who will then buy other products with a high profit margin, which will cover the loss on the 'loss leader' product.
This is common in retailing - the product sold is called a 'loss leader' and the company abosrbs the loss because it encourages customers into the store, who will then buy other products with a high profit margin, which will cover the loss on the 'loss leader' product.