Originally Posted by cctaylor88
Its a loss leader? What do you mean
A "loss leader" is a term referring to an item stores sell at a loss in order to attract customers to shop there, in hopes they'll buy other, more profitable items from them in the future as well. MC is essentially betting that once people set foot in there and see their selection/service/etc., that they'll get repeat business and come out ahead in the end.
In case you're wondering why MC won't offer that $230 price online, it's because typically online shoppers show far less "allegiance" towards any given e-business than people do with local brick-and-mortar outlets. Such a huge discount on a popular item like the i7 won't necessarily pay off in repeat business online like it would in their physical stores.Edited by svenge - 3/4/13 at 10:39pm