So yeah as stated in the title, I am very curious as to how HN make $ from these type of promotion.
Or their intention is not to make profit but to bring more traffic into their retail store.
What are your thought?
How does Harvey Norman make profit with but 1 get 1 free iTunes card?
notewar on 05/07/2013 - 03:32
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If they wanted to drive foot traffic they wouldn't have the deal online too, just in store. So ur wrong about trying to just get foot traffic in. They are probably taking a loss and not making profit.
they just need to set 1 Monster cable, and all the costs are covered :D
I used to own an Apple reseller, and when we first got the iTunes cards we were making 6% profit. So a $20 iTunes card cost us $18.80. Having a buy one get one free for $20 would have resulted in a loss of $17.60
I don't know what the current situation is but every time I see these things go on sale I shake my head
It would be a promotion by the supplier (Probably inComm) and approved by Apple. HN is a franchised company, so the franchisor asking the franchisees to lose money wouldn't be smart.
Not Assocated with HN nor Apple, just some comment from an IT industry vertern.
Apple never do huge discount and they never pricing support reseller nor its distributors.
You seldom see this kind of crazy discount in bigger country / market like US, UK.
People in the industry called this kind of crazy cut throat discount "door prize". They only offers limited stock to get customer in. Most of the time it is availble in store/ for a limited time only.
Sometime it is designed to HURT its competitors who offers price match.
In short, when I see these, I go OW. -period-
It's a suppler deal. I used to work in liquor, and we had a special one off deal from tooheys for a certain product. Would occur once a year, and was below our cost price. It was so good that smaller bottle shops would visit and buy from us (because it was cheaper than their suppler costs)
Wade, who is InComm please? Never heard of them, but in about 2005 when I had the system it was an eftpos like machine that produced vouchers for iTunes as well as phone recharges etc. Oh yes, the machine rental was apx $75 per month, meaning we had to sell a huge amount just to break even………
Most companies wont print their own vouchers/cards, so they rely on an external company to run the system
Maybe a loss-leader, but I doubt it. IF they're even making a 'loss' on the price they pay, they're probably passing it on to the supplier, like the supermarkets often do.
Just guessing.