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September 15, 2017 05:45 am PDT

How Walmart profits while pricing below cost

This video by YouTuber Alex Berman lays out how retailers like Walmart profit even when they are pricing goods, like milk and eggs, well below cost. It comes down to volume and convenience. If they get enough customers buying items with a high profit margin for convenience sake, they can afford to price many items below cost to lure them into the store.

(reddit)


Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/uaL2cC5YFGE/how-walmart-profits-while-pric.html

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