Why does meat go on sale?

[Huskee]

Or any product for that matter...but specifically meat in this context?

I know nothing of meat production or grocery and marketing tactics really. Does meat go on sale because there's simply a large supply for some reason, or because of a certain other reason like the quality isn't as good so they need to move it quickly? Or is it simply a random 'hey, let's drop the price on Tbones this week' for no real reason?

[smarkley]

I think it is usually to increase traffic... hoping you will pay full price for some items. Also, I believe they are always on the lookout for things where they can buy a lot of them at a cheap price, that helps with the above strategy.

[Jerod Broussard]

Couple things.

1. Sale by date is approaching, or it is TODAY

2. Stores do get a certain amount of chicken (just throwing that product out there, not like I know ) that is marked down considerably. They can advertise that awesome price. Due to limited supply, that chicken is gone quick. People show up at the store to get that GREAT price. They are notified that they are out, HOWEVER, we do have something similar. And since they are already in the store, they will surely by something else.

The above chicken may have been called "Courtesy Racks" at one time.

[HC in SC]

That would be a bait and switch unless rain checks were offered.

I would say it is probably a mix of supply and demand, a marketing gimmick to create crowds and / or a reaction to what other chains are doing. Just a WAG.

[DWCowles]

I have a friend that has work in the meat dept. for 25 years at Krogers. I will ask him your question.

[Powersmoke_80]

I don't know why but all i can say is that i am glad they put CAB bone in standing rib roasts on sale at Meijer this week for $8.99/lb reg $13.99 since i said i would do one this weekend for the family Christmas at my parents.

[Jon Solberg]

Loss leader

[smarkley]

yeah... that is what I was trying to say... didn't know it had a name.

[Jon Solberg]

You were spot on my friend. Grocery margins are super tight. Loss leaders are big in that sector for sure.

[HC in SC]

Had to google it - but yeah; the old "Come for the $0.10 wings; stay for the over priced beer" gimmick.

[Jon Solberg]

Okay, this may take a while to get to the bottom of it. Im starting here.

http://www.ers.usda.gov/topics/animal-products/animal-production-marketing-issues/retail-meat-prices-price-spreads.aspx

[Huskee]

My glass of wine tells me I'm out of learnin' mode right now. I'll revisit later. Thanks for posting!

[The Burn]

Yeah, that's too much book learnin' there - break it down for us Jon :-)

[David Parrish]

It's a loss leader strategy. Sure they may lose money or break even on the meat, but they expect you'll buy several more items that have a much better markup and overall they make a profit.

[Jerod Broussard]

Restaurants don't really make much on the big steaks. They make it on that $2 bag of pasta that just made 50 dishes.