Groceries Play Multiple Game

Annoying as it might be for customers *not* shopping for an army, grocery stores show no inclination to retreat from 'multiple' discounting -- those offers where you need to buy five or 10 of the same item. According to a New York Times article, such offers work to boost revenues. For example, When Supervalu tested 10-for-$10 deals versus five for $5 on the same items and in the same markets, it found that people usually bought two more items when the promotion was 10 for $10. When it tried doing one for $1, it suffered a double-digit decline in sales.

Put some of the blame on the economy, with higher food and gas prices sucking wallets dry, but also on manufacturers, which are offering discounts if stores use the multiples strategy for pricing. In most, but not all, cases, the same price applies even if you purchase fewer of the items than listed on the in-store display.