Tuesday, 22 November 2011

Three for the Price of Two

Quite a few shops are making such offers, especially for pretty packages of odds and ends intended as Christmas presents.

So many items are covered by such offers that I doubt if they are what are called 'loss leaders' and suspect that the profit margin is so high that selling three items for the price of two makes more profit than selling just one item.

A little algebra, which I leave as an exercise for the reader, establishes that that implies that the profit in selling a single item is more than half the price charged.

Impulsive shoppers should take care!!

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