Let's say there are three brands of some item. Each week one of the brands is rotated to $1 while the others are $2. And let's also suppose that the supermarket pays 80c per item.
The smart shopper might only buy in bulk once every three weeks when his favourite brand at a lower price, or twitch to the cheapest brand every week. A hurried or lazy shopper might always pick their favourite brand every week. If they buy one item a week the lazy shopper would have spent $5, while the smart shopper has only spent $3.
They've made 60c off the smart shopper and $2.60 off the lazy shopper. By segmenting out the lazy shoppers they've made $2. The whole idea of rotating the prices is nothing to do with the cost of goods sold it's all about making shopping a pain in the ass for busy people and catching them out.
Bingo, an extra 50 cents to 2 dollars per item in a grocery order adds up quick, sooner or later.
Also, in-store pricing can be cheaper or not advertised as a sale, but encouraging online shopping can often be a higher price, even if it's pickup and not delivery.
"In-Store Pricing" on websites/apps are an interesting thing to track as well, it feels the more a grocery store goes towards "In-Store pricing', the higher it is.
The smart shopper might only buy in bulk once every three weeks when his favourite brand at a lower price, or twitch to the cheapest brand every week. A hurried or lazy shopper might always pick their favourite brand every week. If they buy one item a week the lazy shopper would have spent $5, while the smart shopper has only spent $3.
They've made 60c off the smart shopper and $2.60 off the lazy shopper. By segmenting out the lazy shoppers they've made $2. The whole idea of rotating the prices is nothing to do with the cost of goods sold it's all about making shopping a pain in the ass for busy people and catching them out.