The cost of “loss leaders” – products that grocery stores sell below market value to get customers into the store – ends up costing someone, somewhere in the supply chain.
When it’s a product connected to your neighbour’s farm, there’s a chance farmers are getting dinged.
The other problem associated with loss leaders is that consumers start to think that turkey or bag of milk has less value and should always be bargain priced.
U.S. President Donald Trump’s farm subsidies are causing a ripple effect that promotes loss leaders, with meat products being produced there for unrealistically low costs. That can make it hard for Canadians to compete. Read more ….
Photo: Ann Fisher
