Loss Leader question

**mea772** · 10-10-2007, 08:56 PM

I understand what a loss leader is but how does the consumer know which item it is? Is there more than one loss leader item? Do all stores do this?

This might sound like a really dumb question but I had to ask anyways LOL

**mikandmari** · 10-10-2007, 09:13 PM

I shop at 3 different grocery stores. Each week they put out a sale ad, and the front page will have a some items at ridiculously low prices. They tout these items on the front page of the ad, to get you into the store.... figuring that you'll purchase a whole lot more stuff that isn't on sale!

The number of items varies, especially since most of us don't use all of the items on sale.

**druidessemily** · 10-10-2007, 09:14 PM

Generally, loss leader items will be on the first and last pages of a sales ad. They are greatly reduced from normal price, which is how you know if something is a loss leader. Nothing really labels them as such (at least as far as I have seen!) Items might be 12 pack cases of soda (normally 3.50) on sale, 5 for 10. Just recently, Brookshires had a deal where if you buy a jar of mayo, you get relish, bread, and tuna free... that would be a loss leader. Basically, these items are priced really low to draw consumers into the store. Stores figure that if people come in to buy one thing, they might decide to do the rest of their shopping there.

I don't know if all stores do it or not. You just have to know your prices, and watch the ads.

**mea772** · 10-10-2007, 09:33 PM

Thank you for the info.

Yeah, I was kind of thinking that and yeah, sometimes I see a great deal but sometimes they don't seem that great at all. I was just wondering if there is a different way of telling...guess not LOL

I will search more for these items!

**Momof4cats** · 10-11-2007, 05:46 AM

Price book!!

Some things are obvious, such as the soda that's normally $3 a pack and is on sale for $2. But some things are less so. For example, one of my local stores is advertising 30 oz. cans of chili for $1.50 this week; the normal price is about $2.50. It's on the inside of the flyer, too. But I'm gonna grab me some.

I haven't done a price book in years, but I'm about to start mine back up. It's amazing to see the difference in price between stores for the same item, even at regular price.

**mea772** · 10-11-2007, 06:06 AM

Great idea! I really should put one of those books together, I bet it will help me in saving money big time!

**druidessemily** · 10-11-2007, 09:04 AM

I've been thinking about starting a price book, too. But I'm so overwhelmed by how much work it appears to be! Anyone have any tips?

**Momof4cats** · 10-11-2007, 09:58 AM

Originally Posted by druidessemily

I've been thinking about starting a price book, too. But I'm so overwhelmed by how much work it appears to be! Anyone have any tips?

I have to admit I had to start a thread and ask about the forms for the price book, because it's been so long since I've done one, I couldn't remember what they included.

Sara Noel was kind enough to give the link to the one on FV: http://www.frugalvillage.com/printab...rice-book.html If it doesn't work for you, you can tweak it; everyone has their own format.

As for getting it together, I'm just going to start with this week's flyers, making sheets for the items I buy as well as the ones on sale that I usually buy, but don't need. That way, I can also track the trends. If I notice chicken is on sale every 3 weeks, I'll get enough to last to the next sale (I only have the freezer above the fridge). And after a bit of digging, I found an article about price books on FV: http://www.frugalvillage.com/news/mo...rice-book.html

**anna021** · 10-11-2007, 12:22 PM

One of the major store in my area has started a new thing which I hope doesn't catch on, which is giving the great price on loss leaders only if you spent 25 dollars, another store only allows the loss leader prices on certain days, say, fri, sat and sun. at another it's wed. thurs and fri. So now if you want to take advantage of all these deals at these stores there's no way you can do it all in one trip. I understand why they do it, but geez, can't they try and help the consumer out a little bit? With the price of gas so high, many of us try and make all our purchases in one trip. I guess this tactic is hurting their profit.

**peanut** · 10-11-2007, 12:43 PM

I made my price book from the grocery receipts after I got home. Or from notes I made on my grocery list while shopping. Plus the sales flyers. That way you build it up over time, and don't end up trying to do massive comparison shopping trips to build it.

Jean

**druidessemily** · 10-11-2007, 02:16 PM

Originally Posted by Momof4cats

I have to admit I had to start a thread and ask about the forms for the price book, because it's been so long since I've done one, I couldn't remember what they included.

Sara Noel was kind enough to give the link to the one on FV: http://www.frugalvillage.com/printab...rice-book.html If it doesn't work for you, you can tweak it; everyone has their own format.

As for getting it together, I'm just going to start with this week's flyers, making sheets for the items I buy as well as the ones on sale that I usually buy, but don't need. That way, I can also track the trends. If I notice chicken is on sale every 3 weeks, I'll get enough to last to the next sale (I only have the freezer above the fridge). And after a bit of digging, I found an article about price books on FV: http://www.frugalvillage.com/news/mo...rice-book.html

Thank you so very much! I appreciate this!!

**frugalfriend** · 10-11-2007, 03:03 PM

You can also read a lot about making a price book from the Tightwad Gazette book. I did one years ago, and in the process of making it and using it for awhile, pretty much memorized the lowest price on things that I buy often. It really helps in learning unit price.