Q: Some retailers in my business sell some real low margin items. I understand that there are some products in every industry that you must offer as a customer convenience, but is it possible to do this and still make money?
A: The simple answer is yes. That answer needs clarification, however, because it depends on what it is that you are selling and how often you turn that inventory. I can show you dramatic proof that there are low margin items that some retailers sell where they actually make more profit than they do on items returning twice the gross profit margin. For that example I return to my roots and use dog and cat food (low margin items compared with most for a pet supply retailer) as my example, but there are other low margin items in other segments of retail where you can do exactly the same thing.
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