>>9106020It's purchased wholesale beforehand for a fraction of the price per unit. The store will then mark it up like 50% or more and call it good. Time will pass and it doesn't sell so they reduce it. You think you're getting a good deal but they still make profit on their initial investment. If it continues to not sell they will mark it down further. Breaking even is as low as they're willing to go. If the product gets to a level where it will lose them money upon sale they will look for alternative methods to get rid of it. Usually a donation or something to make themselves look good even though they're just giving away second hand unwanted crap. At the end of the day though they still didn't lose anything by just giving it away. On that specific item they lost a couple bucks maybe, but in general the overall sales of the ones that did sell most likely paid off their initial investment.
tl:dr: Retail doesn't lose money, worst case they just break even. They've become masters at this.
