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Originally Posted by MotoskinGraphix |  | | | | | | | | | Simply loss leaders as a gateway to 10,000 products for holiday consumption. Books are overpriced anyway. | |  | |  | |
Exactly. A way to gain more loyal customers so that their holiday shopping is done at the same store. Doesn't really work for screen printers because even if you have a lead product to bring customers in, they will always try to find a lower price through a competitor for the next order, EVEN if they loved your quality and customer service the first time.
Either way, this is a good article for screen printers about how it ruins the entire industry when you start price wars.
Same thing is happening to my dads business, some new company is charging nearly at cost, so my dad lowered it at a loss on his products. Well, my dad had won the price war because the other company was a small one and couldn't compete much longer and went out of business (this happened about 3 times in a year with couple of other companies as well). Even though my dad lost a lot of money during 6 months, he had lots of cash reserve and stood it out.
I say everyone charge $100 per shirt regardless. (wait is that illegal?) lol
Toilet Bowl Effect 
