The new trend instead of coupons or rebates
09-24-00, 05:35 AM
#1
Senior Member
Thread Starter
Join Date: Oct 1999
Posts: 948
Likes: 0
Received 0 Likes
on
0 Posts
Hi! 
It seems that the new trend - which for the moment is replacing coupons or rebates - is the old-fashioned "loss leader".
Both buy.com and ECS (BFL/Cybershop) have instituted "deals" on one or a handful of items, to lure shoppers to their sites, instead of a coupon or rebates that can be used on any purchase.
So far, none of the ECS items has been of much interest, but a few of the Buy.com items seem to be genuine bargains, such as Saturday's $29.99 delivered CD/Cassette/AM-FM boombox which sold out in the morning.
Of course, like all of us, I'd prefer that they spend their promotional money on coupons!
It seems that the new trend - which for the moment is replacing coupons or rebates - is the old-fashioned "loss leader".
Both buy.com and ECS (BFL/Cybershop) have instituted "deals" on one or a handful of items, to lure shoppers to their sites, instead of a coupon or rebates that can be used on any purchase.
So far, none of the ECS items has been of much interest, but a few of the Buy.com items seem to be genuine bargains, such as Saturday's $29.99 delivered CD/Cassette/AM-FM boombox which sold out in the morning.
Of course, like all of us, I'd prefer that they spend their promotional money on coupons!
09-24-00, 07:55 PM
#3
DVD Talk Ultimate Edition
Join Date: Dec 1999
Posts: 4,583
Likes: 0
Received 0 Likes
on
0 Posts
quote:<HR>Originally posted by lwdog:
I thought that the use of "loss leader" pricing is prohibited under the Sherman Act as anti-competitive?<HR>
I am not an expert on the law, but loss leader strategies are used by both local and online retailers here in the US all the time. What is illegal is baite and switch.
------------------
MY SHORT BUT SLOWLY EXPANDING DVD LIST
MY GETTING LONGER BUT SLOWLY EXPANDING DVD LIST
"The earth does not belong to people; people belong to the earth. Everything that happens to the earth happens also to the sons and daughters of the earth." -Chief Seattle.
09-24-00, 07:57 PM
#4
DVD Talk Platinum Edition
Join Date: Sep 1999
Location: The deepest recesses of your inner fears
Posts: 3,327
Likes: 0
Received 0 Likes
on
0 Posts
quote:<HR>Originally posted by lwdog:
I thought that the use of "loss leader" pricing is prohibited under the Sherman Act as anti-competitive?<HR>
No, "loss leader" pricing is OK under the Sherman Act unless you are a monopoly. It is "predatory pricing" by a monopoly that is prohibited.
