Bargain basement

The selling technique of 3 for 2 suggests a bargain - if you want three of something. It may work like this: sell each 'reduced' item at the true price so sell three items at once. If a single item is sold it goes for a higher price.

Example: 3 for 2 @ 99p each. Buy 2 for £1.98 (and get 3) suggests the third item is free. Each works out at 66p instead of 99p. A 33.3% saving and a real bargain. Not really when you consider that if the true selling price were 66p, then buying just 1 or 2 units will cost you 50% more at 99p each.

Other outlets sell a single item at the higher price and are so disadvantaged. They may not realise this and are as unaware as consumers.

Similarly, get 2 for the price of 1. The true cost of buying each unit costs 50% less than the declared selling price. Then the item is sold singularly, but with 33% more volume.

Example: 2 for 1 @ £1.40. Do the math: each has a true price of 70p. Add 33% more content (it's how fruit and such is sold) and the cost reaches 93p, but sells for £1.40. This is still 47p profit on top of the 93p and is 47/93 = 50%.

It could simply be taking a lower profit margin, but I doubt this would be a long-term strategy. Shareholders or corporate profits would suffer. It must maximise return on sale.