Quoth Killer Bees
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Let's say I'm selling DVDs at a loss of $3 per disc and I'm assuming three people out of 10 will come in and buy the DVD as well as other items than I can make a profit on. Let's assume the total profit margin on these other items is $45.
10 DVDs at a loss of $3 a disc equals a $30 total loss, but I scored $45 in profit off those other items so I'm up $15. Now that's not too much, but think if it were 100 DVDs, 1000, 10 000. That adds up to a tidy profit even though 7 out of 10 people are only buying the DVD.
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