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2023-11: Warosu is now out of extended maintenance.

/ck/ - Food & Cooking


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11036260 No.11036260 [Reply] [Original]

How do companies stay afloat when they sell food at a loss?

>> No.11036267

>>11036260
Loss-leaders are to attract customers with unbelievable deals in hopes that they'll stick around and buy profitable things while they're there.
If everyone started stocking up on Costco chickens then leaving without buying anything else, they'd shut it down fast.

>> No.11036268

>>11036260
Because they wager that once they get you in the door for that cheap chicken they'll be able to convince you to purchase other things you didn't plan to buy before you leave

>> No.11036270

>>11036260
>Chicken man's name is literally "God"
?

>> No.11036277

>>11036268
the costscos by me has an outdoor covered food court so you dont even need to buy a membership to get food there.

>> No.11036285

>>11036277
I think Costco is an exception because their founder wanted poor people to have an opportunity for cheap food
In similar places like Sam's everything is indoors and you need a card to even enter the building.

>> No.11036289
File: 2.72 MB, 626x360, egg fort.webm [View same] [iqdb] [saucenao] [google]
11036289

>>11036270
Men who work with poultry tend to be godlike.

>> No.11036294
File: 50 KB, 519x533, 1524820251929.jpg [View same] [iqdb] [saucenao] [google]
11036294

>>11036285
>I think Costco is an exception because their founder wanted poor people to have an opportunity
I don't need to tell you this but your "thinking" is wrong and I can tell that you are quite dim. I just wanted to let you know softly that you are not as bright as you "think" you are.

>> No.11036299

>>11036289
i'm not gay but i would let him ravage my asshole

>> No.11036302

>>11036289
#1 breakfast, lunch AND dinner chef!

>> No.11036305

>>11036260
Costco loses money on most of the things. It's the membership that earns them profit.

>> No.11036317

>>11036285
ive also been to costcos where the foodcourt was inside.

>>11036294
no one has ever enjoyed your company or wanted to be around you.

>> No.11036404

>>11036260
It says how right there in the headline: it's a loss leader.
>sell chicken at a loss
>people start coming to store for cheap chicken
>new customers figure that they might as well get the rest of their groceries there too instead of making two shopping trips
>money lost on chicken creates overall rise in revenue

>> No.11036490

>>11036267
This. I'd never been to Costco ever in my life until recently, but heard from friends all the time "DUDE the pizza is SO BIG and it's like $2 a slice".
I went with them one time and they weren't lying, fucking massive slices of pizza for like 1 or 2 bucks.
But then afterwards they ended up sticking around and spending like $300 on other shit in the store that you honestly could've gotten from other places for the same price if not better. Especially Costco's groceries section, shit's more expensive than just going to an actual grocery store.

>> No.11036492

>>11036267
That would actually be hilarious if it came to fruition tho

>> No.11036495

>>11036289
>eggs are poultry
holy shit every day i learn something new

>> No.11036501

>>11036294
I did an IQ test last year and they said 212, but if you say so.

>> No.11036503

>>11036294
I enjoy your company and want to hang out with you unlike the brainlet you're replying to.

>> No.11036509

>>11036294
you are right anon

>> No.11036550

>>11036490
My take is that Costco offers "better quality" product over store brands that are comparable in cost. The caveat is that you have to buy in bulk
But even then, if you just keep track of sales at the local supermarket, you'll get better product for cheaper

The only reason I keep a Costco membership is rotisserie, food court and housekeeping supplies

>> No.11036699

>>11036490
We only have Sam's Club in my area (basically the same thing) but I never understood who their target demographic is- even families don't need that kind of bulk quantity food, and businesses looking to resale would just order directly for the best possible prices.
My mom would always buy a giant case of some new snack at Sam's and we'd all be sick of it by the time we were halfway through it.

>> No.11036703

>>11036294
Why is there a th*t in the collage of cute smiling animals?

>> No.11036722

>>11036260
Those chickens are old product that didn't get moved by the sell-by date, so marinade them in milk to hide the taste and they sell them again.

>> No.11036743

>>11036260
When the food is a draw and not the moneymaker.

I buy Costco rotisserie chickens because they're cheap AF and delicious and healthy. I also buy about $300 worth of other shit there a month because I might as well while I'm there.

>> No.11036746

>>11036699
>Sam's Club in my area (basically the same thing)
Not on your sweet granny's life kid.

>> No.11036759

>>11036492
that's literally the purpose of those cheap ass BAR-S hotdogs. They're sold for practically nothing but they know you'll buy buns and marshmallows and graham crackers to go along with the cookout

>> No.11036763
File: 466 KB, 1600x950, costco korea.jpg [View same] [iqdb] [saucenao] [google]
11036763

>>11036260
This might be just in the US. They have warehouses in places like South Korea and those get by far the most business. Could you imagine the traffic haha. Gooks go crazy over those chickens, I say this as a Costco employee.

>> No.11036772

>>11036260
how does selling european-sourced "meat" at standard price gain a significant profit?

euroshart detected

>> No.11036774
File: 169 KB, 1200x1200, bottled water.jpg [View same] [iqdb] [saucenao] [google]
11036774

Also, why do Mexicans,Indians, and black people buy so much bottled water? Basically any nonwhite. Why would you continue wasting $ on packages and packages of these when you have water to drink from at home? are they afraid of the tap water or something?

>> No.11036821

>>11036774
nonwhites are retarded. their consumption of tv advertisement is so high, they will buy anything that's "cheap" as long as the tv tells them it is

>> No.11036829

>>11036699
Costco is for the firmly middle class who can afford to buy shit in bulk.

>> No.11036841

>>11036260
>>11036267
This is correct. I used to work for Whole Foods for years and loss leaders and sales get people in the door to buy more stuff. They're not selling most food at a loss.

Also AMA if anyone's interested.

>>11036774
Just a guess, but maybe it's because they're weary of drinking tap water since the tap water in their original country will get you sick. Gee that wasn't so hard.

>>11036821
It's not just non whites, it's whites too. People in general are sloppy shoppers.

>> No.11036847

>>11036550
>My take is that Costco offers "better quality" product over store brands that are comparable in cost.
This is especially true of their liquor, which are actually the same as brand-name liquors, but without the premium price you'd pay for branding. For example, I'm fairly certain their Kirkland brand vodka is just Grey Goose; not "it tastes really close to Grey Goose," I mean it's literally the same, purchased at the same distillery.

>> No.11036850

>>11036774
>are they afraid of the tap water or something?
Considering in Mexico you can get cholera or amoebic dysentery from tap water, I'd say they're a bit wary of it, yeah.

>> No.11036893

>>11036699
I havent been to Sams in a long time but you could get boxes of like 30 hotpockets for cheaper than it would take to buy that many in a regular store. the biggest box they normally sell is 12. same thing with paper towels. I always bought like 50 rolls at a time because it was cheaper

>> No.11036906

>>11036763
arr wear same

>> No.11036916

>>11036743
I stopped buying the rotisserie chicken because 9/10 they were undercooked and bloody
I've sent at least 10 complaints, they sent me coupons for free ones but they turn out the same.
I just stopped sending complaints

>> No.11036940

>>11036916
Call the department of health, they'll fix that shit right quick.

>> No.11036950

>>11036289
HOW OUT NO BREAK EGG

>> No.11037029

>>11036550
>"better quality" product over store brands
eh, debatable. All the shit in Costco is no-name Chinese knock-off brands of shit you can get for the same price or cheaper in other stores, except brands that arent shit.

>> No.11037038

>>11036774
because people in shitty countries cant drink their rainwater because of pollution

>> No.11037044

>>11037029
This is literally not true. A lot of "legitimate, big name" brands also sell their stuff under Costco's Kirkland's label.

This is a lot more common in the food industry than you think. I worked for a small all natural snack producer and we sold out product to a grocery chain under another name. Same packaging, same product, just different glued on label with a fake backstory lol.

We occasionally got some customer emails of people saying things like "This tastes just like this other (ours) brand and the container looks very similar" and I'd basically respond with a wink and a nod.

Also worked for Whole Foods for a long time and a lot of the 365 is pretty generic to other grocery stores like Trader Joe's, just a different looking box.

This is common in the US.

>> No.11037143

>>11036260
https://www.youtube.com/watch?v=hOHydiS5AJo

>> No.11037166

>>11036490

The individual items are often more expensive, but you're buying greater quantity than at the shop so it works out to a lower unit price. That's the entire point of costco.

>>11036260

Like other posters said, they lose money on a small number of items, but customers hardly ever come for just those items. They will end up spending hundreds stocking up on bulk items, bottled water, sodas, chips. Then maybe they buy some lawn furniture or some shit, who knows?

>> No.11037172

>>11036260
It lures people in dumbass.

>> No.11037177

>>11036746
You're right. Sam's club is better. The hot dog and pizza is way better.

>> No.11037189
File: 3 KB, 126x126, 1529073189819.jpg [View same] [iqdb] [saucenao] [google]
11037189

>>11037044
>gets email
>winks and nods
>my face when imagining that

>> No.11037201

>>11037044
It's relatively common in Canada too, I worked for a company that canned salmon and there was no difference between our "High end" customer and the "Cheap store brand".

>> No.11037248

>>11036722
Costco forklift driver here.
They're fairly fresh.
I should know, I get pallets of that shit damn near daily.

>> No.11037254

>>11036260
>go to grocery store
>buy nothing but rotisserie chickens

Ha ha take THAT sucker

>> No.11037256

>>11036490
Where I live Costco is cheaper than the grocery stores around me.

>> No.11037259

>>11037248
>>11036722
It would be illegal to sell past date anyway. Grocery store regs are quite rigorous, and most voluntarily go above and beyond. Generally, the use by date a store puts on something is a week ahead of when it would really turn bad, and stamped dairy can usually last a day or so longer.

>> No.11037282

>>11036763
Yeah the Korean buildings make more than a million a day each and are always on the top ten on the front page of the intranet

>> No.11037286

>>11036847
Costco bought a factory from Gray Goose and makes it with all the same equipment

>> No.11037290

>>11036722
Absolutely not. What the fuck are you talking about? The chicken comes in to make and sell, no chicken on that shelf is older than two hours out of the rotisserie, we pull them after that. I ran the chicken rotisserie for like a year and a half.

>> No.11037328

>>11036699
>businesses looking to resale would just order directly for the best possible prices.
Small or weekend type food/drink booths won't do enough volume to get as much a discount as just buying at Sam's, plus they return what they didn't sell on Monday. I routinely see guys with double carts stacked with the that kind of stuff returning it Monday morning which is disturbing af because you know they left those hotdogs, hamburger patties, frozen tendies, wings and sausages sit out w/o refrigeration. Beware of buying those kinds of products, just sayin.

>> No.11037365

>>11036774
>>11036821

>trusting tap water

You white people sure aren't bright for being the "master race".

>> No.11037451

>>11036260
They sell other things for negative loss.

>> No.11037493

>>11037365
Just buy a home water filter or buy purified water by the gallon for 20 cents. Bottled water is a scam for dumb people. Most bottled waters are just straight tap water with no processing from states that have good tap water.

>> No.11037518

>>11036289
how does he get out?

>> No.11037549
File: 24 KB, 474x350, th.jpg [View same] [iqdb] [saucenao] [google]
11037549

>>11036501
Genuinely kek'd at this.

>> No.11037555

>>11037518
He stomps on these fuckin eggs whenever he likes and crush them and shit

>> No.11037586

>>11036841
Dude if they were able to make the effort to immigrate to the US theyd be smart enough to know or at least ask about our tapwater

>> No.11037683

>>11037365
I live in a rich suburb where tap water is actually safe LOL.

>> No.11037714

>>11036294
How did they get a picture of a dinosaur? Aren’t they exctinct?

>> No.11037733
File: 37 KB, 600x400, 0555BB4F-6F29-4135-8F7A-0DB5EC24B358.jpg [View same] [iqdb] [saucenao] [google]
11037733

>>11036774
ha ha those wacky blacks, what possible reason could they have to believe that they’re being poisoned

>> No.11037744

>>11036260
The loss items just attract people to the store. They do it a ton with pop. No one makes much money from pop anymore, but still use it as an attraction on holidays and in the summer

>> No.11037752

>>11037555
Genuinely reeling at this post, and how has no one noticed those trips?

>> No.11037782

>>11037518
He looks like he sleeps there

>> No.11037838

>>11037733
>A picture of a dirt filled water bottle with no context
Wow, you really blew my mind

>> No.11037853

costcos are huge stores. you have to walk by electronics, clothes, groceries, bakery, tools, books, pet products to get to the chickens. the only things out of the way from chicken at mine is pharmacy, dairy, and junk food. Plus it's impossible to get in and out and find a parking spot unless you go at open. it's not worth it to *just* buy chicken

>> No.11037998

>>11036260
they have to sell all the food to get out of there

>> No.11038045

I work in supply chain for Saint Louis' Costco. The margin on almost every food item we sell is razor thin

>> No.11038047

>>11038045
Recommend that job?

>> No.11038055

>>11036260
retarded bait thread, good job OP

>> No.11038087

>>11036267
Oh yeah and people have to pay for a membership, so realistically they're not missing out on much profit there

>> No.11038089

>>11037365
I live in a first-world country.

>> No.11038275

>>11038087
costcos gas is like 40 cents cheaper than my local gas stations. Considering a membership pays for two people, just using their gas and eating their rotisserie chickens make up for it. Memberships only turn a profit for them when people buy it and are too lazy to shop frequently there to buy their loss-leaders

>> No.11038848

>>11037733
Why do they keep electing democrats who don't fix the problem? I guess the promise of more gibs overrides everything else.

>> No.11039159

>>11036270
kono Dios da!

>> No.11039166
File: 65 KB, 399x418, 1501426156144.png [View same] [iqdb] [saucenao] [google]
11039166

>>11037714
yes we're extinct don't worry about it

>> No.11039206

>>11037259
Grocery stores can change the sell by labels on things they are meaningless

>> No.11039242

>>11037752
Trips aren't a big deal on this board, and only Moran's notice them even on other boards

>> No.11039280

Yet they discontinued polish dogs, life is unfair

>> No.11039593

>>11039166
Kek

>> No.11039778

>>11036260
by also selling food without a loss
how is this a difficult concept for you

>> No.11040928

>>11039778
But then it wouldn't be a loss leader any more

>> No.11040937

>>11040928
Not him but obviously to maintain the current customer base who value that perk. Do you want complaining members turning to other competitors for their chicken?

>> No.11040940

>>11036774
lead pipes in my place so I buy bottled water

>> No.11040948

>>11036260
Loss leader, as others have stated. Walmart does the same shit with their 50c 6 pack hotdogs.

For that image it is basically
>sell chicken at a loss
>customer goes picks up something like the following
>mashed potatoes for 1.99 a pound they make and buy for probably 25c a pound
>veggies at 10x the price of what they bought it at
>probably some soda or drinks again for a huge mark up

People buying those are more that likely buying for a family, everything to sell that chicken makes up for it. Gas stations figured this out way long ago offering free coffee when you buy a doughnut for 99c

>> No.11041024

>>11037328
Don't know about Sam's, but costco throws out any and all food returns except for like, unopened canned goods for exactly that reason.
>t. Costco employee

>> No.11041671

How much is this chicken and what are some other loss leaders?

>> No.11041686

I'm going to buy all their chickens and resell them so I can run them out of business

>> No.11041733

>walk into costco
>ask associate where I can get their chicken
>take chicken to cashier
>trip and fall on accident and cashier stands there wondering what to do

>> No.11041740

>>11040940
I hope you mean gallon jugs or bigger, and not 24 packs of 16.9oz

>> No.11042687

>>11037998
like a video game challenge

>> No.11043488
File: 131 KB, 1472x1047, 1533837852017.jpg [View same] [iqdb] [saucenao] [google]
11043488

>>11036294

>> No.11043688

>>11041024
Really? They have to take a serious hit on that because particularly after a holiday or multi-festival weekend I've been in Sam's early monday morning and there's a huge line at returns with people bringing back cartloads of those kinds of meats. Hard to believe they can routinely take that big a hit.

>> No.11043744

>>11036260
you sell a few highly popular things at a small loss and it brings people in who will almost always buy other stuff too. just think of it as another form of marketing/advertising

>> No.11044030

>>11043688
>there's a huge line at returns with people bringing back cartloads of those kinds of meats.
That sounds pretty disturbing. They might just freeze them and then sell them back to people making cheap pet food or something though so it's not a total loss, or they take it into account already. Sounds pretty fucked up though, dunno how people can feel perfectly comfortable doing that.

>> No.11044078

>>11037853
I got one hour after opening and always find a good spot. Everyone goes at opening and starts leaving after about an hour.

>> No.11044082

>>11036772
>tfw half the posts on 4chan read like something a schizophrenic who refuses to take medication wrote
>tfw this is a prime example of such post

>> No.11044158

>costco closest to me has half the parking lot torn up for repaving
that was a fun parking day

>> No.11044260

>>11043488
I love Simpsons reaction images because they can convey the message PERFECTLY without even needing to be accompanied by text.
I've seen this one posted quite frequently in the last few weeks and it's probably my favorite yet.

>> No.11045232

>>11036699
My old boss bought erry thing for the company like toilet paper cleaning supplies and vending machine resale stuff so he could write off his cosco memebership.

>> No.11045407

Reminder that the AVERAGE costco customer makes six figures

>> No.11046088

>>11036267
Lol I've actually seen this happen so many times.

>> No.11046096

>>11036774
t. jelly estrogen-laced boy

>> No.11046161

>>11041740
It depends on your location.
They sell 4 packs of 1.5 liter bottles where I'm at for .70 cents.

>> No.11046168

>>11037029
I ignore any post that begins with "eh". Are you retarded or something?

>> No.11046172

>>11036285
Walmart and other mega stores do the exact same thing, its just an extension of sale marketing to a state of permanence.

>> No.11046175

How do companies stay afloat when they spend money on advertising?

>> No.11046698

>>11036289
Why does he put the giant thing of eggs back on the hob after he's done?

>> No.11046722

>>11046096
>Water in plastic bottles doesn’t have xenoestrogens

>> No.11046818

>>11036289
¿Pero como sale sin romper los huevos? ¿Se los tiene que comer todos?

>> No.11048388

>>11036285
>their founder wanted poor people to have an opportunity for cheap food
SPOILER ALERT
No corporation has ever "cared" about poor people.

>> No.11048417
File: 1.87 MB, 1954x1632, Screen Shot 2018-08-11 at 6.44.45 PM.png [View same] [iqdb] [saucenao] [google]
11048417

>>11037838

>> No.11048427

>>11048417
>mom found the pissbottle
>tell her its tapwater
>she actually believes me

>> No.11048432

>can't roast a chicken at home.
it literally takes less than a hour.

>> No.11048437

>>11036260
by selling other food not at a loss

>> No.11048442

>>11048417
How did generations of leftist control of the city lead everyone to blame this problem on republicans?

>> No.11048480

>>11048442
You've explained every liberal waste land like LA, San Francisco, and Seattle

>> No.11048484 [DELETED] 

>>11036260
Because every fucking time I step foot in that place I drop at least $200. I might stop in just for a chicken and before you know it I have a fucking 20lb standing rib roast and a TV in my cart.

>> No.11048501 [DELETED] 

>>11036490
It is not more expensive. It is generally less per item but really only a good deal if you need that volume. If you buy 200 of something and end up tossing 50 you are losing out. If you have four kids then you can save a lot. We use it mainly for household items like paper towel and asswipe, and it is definitely more cost effective. Their meats are also excellent and generally a higher spec than normal store bought meat. You do have to look at pricing and more importantly per item pricing.

>> No.11048510 [DELETED] 

>>11036847
Their French vodka is grey goose their American vodka is sky. The rum and bourbon are both made by Jim beam. Not sure about the rest.

>> No.11048554

>>11036699
I am friends with a Chinese family that has a chinese food place. They buy their poultry from there.

>> No.11048862
File: 61 KB, 600x800, 137593505136.jpg [View same] [iqdb] [saucenao] [google]
11048862

>>11036847
>Kirkland Vodka

>> No.11048887
File: 34 KB, 640x360, 7e8.jpg [View same] [iqdb] [saucenao] [google]
11048887

>>11048862

>> No.11049260

>>11037853
no one goes there anymore, it's too crowded.

>> No.11049288

>>11046168
>I ignore any post that begins with "eh"
Clearly you don't.

>> No.11049467

>>11036847
kirkland liquor is god tier when you live in a state that has the sole right sell liquor

>> No.11050490

>>11037555
Trips confirm

>> No.11050501

>>11036260
amazon never turned a profit until like 3 or 4 years ago, yet they are one of the biggest in the world. that's how.

>> No.11050552

>>11036774
>tfw live in NYC
>tfw have god tier tapwater
>family all drink bottled water constantly
maybe estrogen tastes good idk

>> No.11050557

>>11049467
Utah?

>> No.11050792

>>11050552
>nyc
>god tier anything
Delusional

>> No.11050804

>>11050792
It's good precisely because we steal it from upstate.

>> No.11050836
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11050836

>>11046818

>> No.11050838
File: 85 KB, 600x429, RogerR20160120_low.jpg [View same] [iqdb] [saucenao] [google]
11050838

>>11036774
Does Brietbart News not talk about Flint?

>> No.11051500

>>11050792
>nu york isn't the center of the universe
Delusional

>> No.11051641

>>11036285
No you don't, they can not stop you from buying alcohol and medical supplies

>> No.11051651

>>11036774
so they can return the bottles for cash, because EBT no give money for booze

>> No.11051950

>>11050838
It isn't only Flint, we have boil orders all the time in towns around this southern shithole I live in.

>> No.11052368

>>11050557
Virginia, luckily i can go to sc every summer