MLM Survivors Club: Re: [MLM Survivors Club] Re: Shaklee new web policy

Tuesday, January 8, 2008

Re: [MLM Survivors Club] Re: Shaklee new web policy

On Jan 9, 2008 4:44 AM, sandygw1 wrote:

>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,

A loss leader is a product that is sold to entice people to purchase
other products are the normal price. 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.

> I cant say that it isn't 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.

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;

xan

jonathon