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[Sport Chek] TSSC Exclusive Partnership Pricing (May 23 - June 2) - IN STORE ONLY

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  • Jul 6th, 2019 12:48 pm
Jr. Member
Dec 12, 2013
103 posts
31 upvotes
Toronto
jellytime wrote: ^ The people that think Sport Chek lost money on this promotion don't really understand business or economics.

The only way Sport Chek would lose money is if they're selling their products at a loss.

Operating expenses are a fixed amount regardless of what their sales/promotions are. If their rent is $10,000 a month and their staff salaries are $5,000 a month, guess what, that doesn't change each month. That is a fixed expense cost. The name of the game is to move product, period.
Right, because profit margin doesn't matter. If this model is better for business, why not just always sell at these prices?
:rolleyes:
Deal Addict
User avatar
Feb 19, 2014
2747 posts
1609 upvotes
Langley
fcukstrated wrote: Right, because profit margin doesn't matter. If this model is better for business, why not just always sell at these prices?
:rolleyes:
That's a great question.

They set specific profit margins on products to make a specific profit. That's why they don't always sell items at these discounted prices.

When they have promotions, these profit margins go out the window because they think that the volume of the sales will make up for the reduced profit margin. Sales and promotions get people in the door, and they are hoping they spend money.

There is a caveat though. You can't always have promotions or sales, otherwise patrons will just wait for promotions or sales to buy items. So there is a fine line that needs to be considered. Just look at Banana Republic, they really screwed themselves over because most regulars know never to buy items on regular price.
[OP]
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User avatar
Jul 5, 2001
6072 posts
3848 upvotes
Taking bets on how many Kawhi jerseys are being returned today.
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Sep 4, 2003
4585 posts
241 upvotes
Vancouver
9394 wrote: Taking bets on how many Kawhi jerseys are being returned today.
I saw 2 jerseys and 4 shirts today on the shelf. Its all return from today. Less than 2 hrs after opening lol

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