Web prices – how do they do it?

Discussion in 'You couldn't make it up!' started by Newshound, Oct 29, 2012.

  1. Newshound

    Newshound Member

    I would never have believed five years ago that customers would buy bulk sacks of dog food on-line. The margins are not exactly generous and carriage on 15 kilo is fairly high. Yet as I write, you can buy most brands on-line, discounted off retail, many including delivery. Others currently have a deal on where if you buy two bags the delivery charge is waived. For instance, one such site offers Hills adult at £39.99. This costs us currently £28.43 plus VAT (£34.11). The cheapest price I could find for carriage on 12 kilo is £5.99 plus VAT, which brings the price virtually to what they are selling it for. This level of discounting and minimal margins exists right across the spectrum of manufacturers.  I cannot work it out, so maybe someone can enlighten me on how web traders can make money at these prices?
     

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