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Twitter: Jschwa
Blog: Robber Baron Blog

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I was in a Best Buy store this weekend, and noted as usual the extraordinary amount of room devoted to CDs. It seems a waste. It’s like going to the grocery store for milk and seeing cows and pails.

CDs is a loss leader for Best Buy.  They don’t make money on it, but it’s the cheapest place where you can buy them so it drives traffic to the store. They hope that while you’re there you’ll purchase something else.  Same things with bananas in grocery stores.  It’s impossible to make money on bananas.

James Lileks (via rodmitch) (via jeffmiller) (via mikehudack) (via soupsoup)

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    CDs is a loss leader for Best Buy. They don’t make money on it, but it’s the cheapest place where you can buy them so it...
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