A reverse loss leader occurs when a stores “loss leader” actually costs them a customer. This can happen by a loss leader being inappropriately priced, or by a store forcing customers to buy astronomical amounts of merchandise in order to even qualify for the “loss leader". This reversal of a great sales tactic surprisingly happens fairly often. It actually happened to me just the other day!
Let me explain.
I went shopping yesterday in Ace hardware store. I was looking for a hat rack and other possible items for my new hat store (I bought a hat store last week. We are still looking for a name, suggestions are welcome). While I was perusing the aisles I happened upon a terrific sale. Giant plastic bins great for storing childrens toys, blankets, books, whatever, at an amazingly low price! The bins were marked down from 112 nis to 69 nis and further marked down to the low total of 20nis per bin. Obviously excited, I stacked 6 of these bins into my cart. I would have taken more, but my cart was totally full from the extra large bins.
Not wanting to take a chance that the sale would end in the next few minutes, I sped straight to the checkout line. On my way I was stopped by a sales agent, “You know those bins are only on sale if you buy 500 nis worth of merchandise. Once you have purchased 500nis only then you will get one bin for 20 nis”. He had understood that there was no way that someone would buy the bins for the proposed not on sale price of 69nis.
Apparently I was not the only customer to be confused by this strange loss leader. If ACE had actually written, “Buy 500 nis - get a plastic bin for the discounted price of 20 nis” I would not have gotten confused.
For a few seconds I debated buying 500nis worth of junk. It only took 3 seconds to return the items to their shelves and eventually leave the store.
This just in! No one is spending 500 nis in order to save a few shekels. Additionally, please put prices on store merchandise. Not everyone will be spending 500 nis on every purchase.
That loss leader, lost them a customer.
