In convenience stores, the idea with special offers is to get customers to buy more. We give away over £1000 of goods every week on multibuys such as BOGOFs, and probably lots more on half prices and other price cutting.
Our shop's average weekly takings is £18,000, so if we assume that the £1000 multibuy is ALL BOGOFs, our weekly sales would only be £17,000 without them.
Our store as a profit centre gets the £1000 back from head office, so our weekly sales is actually closer to £19,000. It is an excellent way to make more money for the stores. The loss on multibuys is made at head office, so i wouldn't know about that stuff lol.
The company does occasionally buy cheaply made tat from foriegn companies. Like Lee's teacakes and mammoet cookies, priced at 99p. They always sell really well and fast, and the company buys, say, 20 pallets of them and ships 2 cases of each to all the stores (540 of them). They probably only cost £0.70 for them to buy, we sell them for £0.99, this is another way to make money, and another thing that is good for lunchboxes and a good impulse buy! And the company doesn't make any loss on them!
Ban's point about bog roll is fair enough, but the store gets around little points like this by reducing orders on their other bog rolls because demand for them will obviously drop! We always have a BOGOF on a branded toilet roll or kitchen paper, and it always sells. As a convenience store, we are a "last resort" for buying toilet paper - it is often forgotten at the supermarket. If they buy 2 lots at our shop, they might not buy any at the supermaket, and then need to come back next week cos they have run out!!
And curries and other ready meals are also always on offer, so demand for toilet paper MIGHT rise!!!!!