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Saturday, March 31, 2012

The Secret Behind Those Great Low Prices

I'm generally a cynic when it comes to the news.  Last summer in Israel the pseudo social justice groupies were all up in arms and having a blast at free concerts and other freebie entertainment.  It all started with cottage cheese.  They said that the so called food staple cost much more than in the states.  Well, things are never so simple.  In the states, as in Israel, there are all sorts of stores, all sorts or pricing and packaging of food etc.  There is no one price.
There is also what's called loss leaders, when the store knowingly and intentionally sells a specific product for less than it cost them.  I recently found an article about how the stores in Jewish neighborhoods of New York are even giving matzah for free to get the customers.
Psst! That 5-pound bundle of Streit’s matzo you just bought for $8.99 probably cost the store about $14.99. Your friendly neighborhood supermarket manager was willing to take the $6 hit just to lure you in so you’ll stock up on Manischewitz gefilte fish and Gefen dish detergent.
For years, supermarkets have treated Passover matzo as a loss leader — a product sold at a steep markdown to lure Jewish shoppers and their expensive Seder shopping lists. In highly competitive markets such as the New York tristate area, some stores are literally giving it away.
In recent weeks, shoppers at Waldbaum’s supermarket, in the Long Island town of Great Neck, N.Y., could choose between a $3 coupon for a bundle of heavily discounted American matzo, or a free bundle of Israeli matzo with every $25 purchase.
Read more
I work in Yafiz and I see the prices in Rami Levi.  He does that, too, with some products especially before holidays.  He'll also drop the prices of rolls and even chicken a short time before closing if he has too much left.

According to the news, the Korach political agitators are planning more carnivals and camping in city parks for this summer.  It may be cheaper entertainment than some day camps....

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