Business Concept – Supermarketing strategy
Today I went to the supermarket across the street, as I go almost every day on my lunch break. Its a fairly big supermarket, if not one of the biggest in the city.
As it is a very hot day in Montevideo i decided to go buy me some fresh cold orange juice, and since I’m always trying to save some money I thought to myself it would be smartest to buy a big 3 liter bottle instead of the small 1 liter bottle. Now wait! I checked the prices of both and to my surprise it was actually cheaper to buy 3 of the 1 liter bottles than the big 3 liter bottle. Now why?
At first I though it had to be a mistake by the supermarket, but then, talking to my co-workers they told me that the same happens with washing machine powder, and other frequency household items.
That got me thinking, and this is my conclusion:
The supermarket wants you to go there to buy these items as often as possible.
The competition on these products is fierce and the margins are small. The supermarket does not make a lot of money on them, if they make any at all. But people are used to buy these products, in fact, they almost have to buy them periodically, and when they do, they come to the supermarket and may find themselves buying something else, something with bigger margin for the seller. Maybe the buy a high priced noble product, or see an offer and fall for it, or remember they have to buy something else while strolling around the supermarket.