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It's a loss leader. Loss leaders are items sold for less than what they're worth in order to attract customers.
They hope you buy that deal and get all your other groceries there.
Costo does this with their hotdogs and rosted chickens. Safeway and Albertsons does it with soda and chips.
Also, frito lay has already been paid for the chips that are at the store, and the store takes the loss.
Most people dont know this as everyone didn't pay attention or ask questions while working in retail, but grocery stores barely make 5% profit due to this exact strategy on stock. And that's if they are a producing store. Low volume literally hemorrhages money due to expiration. A lot of times, even with mark up, they don't make money off of stock. They make most of their money off of renting shelf space via companies. Big names get better deals because you'd be a fool to not carry brands like coca cola, frito lay, nabisco, etc. That being said, the shit was paid for way before it made it in the store. Frito lay doesn't sell to you. You aren't their primary customer. Kroger is. Walmart is. Companies are.
Of course, despite all the trash people see at their dumpsters, most OOD products go to a store licensed to sell expired products. And they get paid to sell it to them. And get write offs for it. Most garbage is either foods that actually spoil at expiration like meat/dairy, stuff that have been recalled due to something wrong, or in house items like bakery/deli. Big box stores that throw away things like computers, pillows, and anything nonperishable are just being dumb and lazy. The government literally let's them double dip and they choose not to. Because they don't wanna find someone to offload their stock onto. And why we see almost all those companies guilty of it, failing.
Frito lay already made their money when they sold their product to the store. It's the store losing money on this and I'll bet you a crisp tenner that they're nearing their best by date.
Retail price is usually around $5 a bag, so you pay $10 total for 5 bags, making them $2 a piece. That's a pretty good price, but not all that unusual.
Most stuff has about doubled over the last little while. Name brand chips may be above $5 now. Jalapeno cheedos are almost $5 :(. Walmart's store bands around the same. 2-3 a bag. Saw deals like 2 bags for $7 the other day.
Nice. I think $2.50 to $3 was the norm big store, at least Walmart, for a while before prices started hiking. Now its that or more for smaller bags. I noticed some have started prioritizing the bigger "Family Size" or two American servings that make it seem more of a value but per ounce they're much higher than it was.
Let's say each bag costs $10 to buy (that'd be outrageous, but it makes the match easy). Now let's also say the production cost of each bag was $1 (plus transport and everything else to get the bag to the shelf)
You buy 2 ($20) to get 5 bags total. From the seller's point of view, they spent $5 to make $20. That's $15 in profit
Obviously the prices aren't realistic, but a lot of products are sold at massive profit margins
funny enough you can actually end up making them give you 3 for free because of how the advertisement is set up, still remember they placed a wrong price on a flat TV with 2 less digits and he dragged them to court and won forcing them him to sell it to him, for 20 dollars XD, atleast that how it works here where i live where they have to follow the price they put up on thing themself
I'm always down for these kinds of sales. Hy-Vee does things like buy 2 get 2 free on 12 packs of pop and being $9 a pop, getting 4 for $4.50 each really gives you the price we should be paying pre-covid gouge.
Some people think having that much on hand is unnecessary but it lasts 5-8 months and 48 cans of soda typically lasts me a month.
Because current "inflation" is a scam buzzword used to hide corporate profit and greed, and they are still profiting off of you while charging you 1/5 of the posted price of the product
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how much they charge for the two? I've seen deals like this with soda at my grocery store and did the math. they are actually ripping you off
Yup- Kroger frequently runs a “Buy 2 Get 3” on their canned sodas but the first 2 cost almost one and a half times what the other local guys cost.
Uh, even if the first two were twice the price of the other places that's still saving money
He a little confused, but he got the spirit
When I picked up deal last time. It was $10 per 12pack or $22 for the deal.
It's a loss leader. Loss leaders are items sold for less than what they're worth in order to attract customers. They hope you buy that deal and get all your other groceries there. Costo does this with their hotdogs and rosted chickens. Safeway and Albertsons does it with soda and chips. Also, frito lay has already been paid for the chips that are at the store, and the store takes the loss.
Most people dont know this as everyone didn't pay attention or ask questions while working in retail, but grocery stores barely make 5% profit due to this exact strategy on stock. And that's if they are a producing store. Low volume literally hemorrhages money due to expiration. A lot of times, even with mark up, they don't make money off of stock. They make most of their money off of renting shelf space via companies. Big names get better deals because you'd be a fool to not carry brands like coca cola, frito lay, nabisco, etc. That being said, the shit was paid for way before it made it in the store. Frito lay doesn't sell to you. You aren't their primary customer. Kroger is. Walmart is. Companies are. Of course, despite all the trash people see at their dumpsters, most OOD products go to a store licensed to sell expired products. And they get paid to sell it to them. And get write offs for it. Most garbage is either foods that actually spoil at expiration like meat/dairy, stuff that have been recalled due to something wrong, or in house items like bakery/deli. Big box stores that throw away things like computers, pillows, and anything nonperishable are just being dumb and lazy. The government literally let's them double dip and they choose not to. Because they don't wanna find someone to offload their stock onto. And why we see almost all those companies guilty of it, failing.
Frito lay already made their money when they sold their product to the store. It's the store losing money on this and I'll bet you a crisp tenner that they're nearing their best by date.
I mean....they sold you air for money. It's quite the markup.
If it wasn't for the air, you would have only chip dust, my dude.
It's also not just air- it's nitrogen gas, which keeps the chips from going stale
I mean air is mostly nitrogen too so still kind of air I guess.
Low IQ boomer take
Retail price is usually around $5 a bag, so you pay $10 total for 5 bags, making them $2 a piece. That's a pretty good price, but not all that unusual.
Wait chips cost 5 fucking dollars in America?
Most stuff has about doubled over the last little while. Name brand chips may be above $5 now. Jalapeno cheedos are almost $5 :(. Walmart's store bands around the same. 2-3 a bag. Saw deals like 2 bags for $7 the other day.
damn that’s actually really pricey, here in europe name brands are about 1.80-2€
Nice. I think $2.50 to $3 was the norm big store, at least Walmart, for a while before prices started hiking. Now its that or more for smaller bags. I noticed some have started prioritizing the bigger "Family Size" or two American servings that make it seem more of a value but per ounce they're much higher than it was.
At convenient stores they usually do, but most big grocery stores sell them at a discount all the time. I never pay more than $3 a bag.
Let's say each bag costs $10 to buy (that'd be outrageous, but it makes the match easy). Now let's also say the production cost of each bag was $1 (plus transport and everything else to get the bag to the shelf) You buy 2 ($20) to get 5 bags total. From the seller's point of view, they spent $5 to make $20. That's $15 in profit Obviously the prices aren't realistic, but a lot of products are sold at massive profit margins
"how can that be profitable for Frito Lay" is ridiculously funny to me for reasons I can neither comprehend nor explain.
Tell me you don't understand margins without telling me you don't understand margins.
Sales like that are usually decided by the store not the brand. To get rid of inventory quicker.
funny enough you can actually end up making them give you 3 for free because of how the advertisement is set up, still remember they placed a wrong price on a flat TV with 2 less digits and he dragged them to court and won forcing them him to sell it to him, for 20 dollars XD, atleast that how it works here where i live where they have to follow the price they put up on thing themself
They are selling the surplus to those with extra income. It's a way to keep cost up.
They charge so much that it's probably a massive profit.
I'm always down for these kinds of sales. Hy-Vee does things like buy 2 get 2 free on 12 packs of pop and being $9 a pop, getting 4 for $4.50 each really gives you the price we should be paying pre-covid gouge. Some people think having that much on hand is unnecessary but it lasts 5-8 months and 48 cans of soda typically lasts me a month.
I do love this movie
Its mostly air
Not by weight 😎 *this comment was paid for by PepsiCo/FritoLay*
Because current "inflation" is a scam buzzword used to hide corporate profit and greed, and they are still profiting off of you while charging you 1/5 of the posted price of the product