Now, I've never attended university to study economics, and I've never operated a retail business, but I do know how to add and I have a bit of dollar sense.
Case in point: I wanted to buy a cordless drill and an extra battery (because we all know how frustrating it is to have to stop your work because the battery just died). So I went to a local big name retail outlet and shopped around a bit. I noticed a brand name cordless drill with a carrying case, a battery, a battery charger and a fine assortment of attachments such as extra drill bits, sockets, screw driver ends and a hand operated ratchet.
Now the regular suggested retail price for this little kit was $99, but it was on sale at 1/2 price ($49.50). The extra battery that I had hoped to purchase was on sale for $59. So using the last half dozen or so active brain cells that I still have, I did some quick mental math.
If I buy the drill kit along with a spare battery, I would be paying $109.
But if I buy 2 drill kits (so that's two sets of carrying cases, batteries, battery chargers and fine assortments of attachments such as extra drill bits, sockets, screw driver ends and two hand operated ratchets.), I would be paying $99.
Hmmmm... what should I do?
Yup. I bought two.
How do these people stay in business?
(Of course I know that they most likely bought these drill sets from China for $10 a piece. That's how they stay in business)
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