In the 1990s, Walmart decided to use a loss leader strategy by selling a popular coffee maker, the Mr. Coffee brand, at a steep discount.
They sold the coffee maker for $4.96, which was significantly lower than the usual price of around $20.
The result? Customers flocked to Walmart stores to buy the coffee maker, and while they were there, they purchased other items like coffee, creamer, sugar, and even other kitchen appliances. Walmart's sales of the coffee maker were so successful that they sold over 1 million units in just a few weeks, causing a shortage of the product nationwide! 🤯
Against this, there are hundreds of failed attempts too. But, when it works, it can change your company's future outright. Try things!