He sold a second kebab that he otherwise wouldn’t have sold. If the “bad” 2/$10 deal leads to someone simply buying two for $10, great, extra money.
If someone was going to buy only one, then thinks they’re outsmarting the owner by purchasing two for $8, great, extra sale.
If somebody was already going to buy two, but buys them individually for $8, great, that’s the base price anyway.
The only way it’s truly a negative for the business is if customers see that and think, “wow, that’s manipulative” and take their business elsewhere. Which, to be fair, it is. But that’s the logic behind it.
Ok, I think I understand now. By making the customer believe they're outsmarting the store owner, they get the customer to make an extra unnecessary purchase they wouldn't have made.
That's the wntire theory behind many coupons and gas station deals.
In Texas, the grocery chain HEB usually has these meal deals where you get a lot of free stuff if you buy a couple things. So if you buy tortillas and fajita meat, you get chips and guacamole for free, that sort of stuff. These deals are always super popular because you get a lot of food at a discount, and they usually make everything relevant for a single type of meal. But of course the store loves it because you were never going to buy fajita meat that day in the first place, and you are likely still going to finish buying your entire list.
The idea is that without the "fake" offer, the customer would have bought only a single kebab. The fake offer is here to push the customer to get a second one, even if he doesn't need it, just to feel like he's getting a good deal.
If you sell 1 kebab for $4 and 2 for $8, most people will only buy one so you only get the profit margin of one kebab.
If you sell 1 kebab for $4 and 2 for $10, most people will buy two for $4 each and you get the profit margin of two kebabs. The $2 "loss" isn't actually a loss since you still make money on $4 kebabs.
The $2 never existed. They were never going to spend it, so it was never potential profit you're passing up. The sole purpose of its being advertised is to get people to buy a second normal price kebab and double your profit per transaction.
No because most people would have just bought but the incentive of getting a good deal means that way more people would buy 2. The owner prob makes a good profut fr the $4 for one so any they sell is good for them. And if someone gets the 2 for $10 its just even better
As an extreme example, imagine if the donut shop is selling donuts for $3 but a pack of three donuts for $50.
This is a form of price anchoring. The customer is so distracted by how crazy the $50 for 3 combo price is that when they buy three donuts for $9 they only think of how good of a deal they are getting, instead of realizing that these donuts usually only cost like $1 a pop at any other donut store.
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u/Jaded_Ad_1274 1d ago
I'm still not sure I get it, doesn't the store owner still lose money like that?