Interesting sales strategy this was I thought as a company was having a large sale and next to its prices there were often labels to tell people that they make say very little money on the sale of the item. I guess psychologically this should make people feel like they are getting a bargain as the company is selling something almost at cost as an example.
I have often seen companies use the slogan of “below cost” to tell people that it is a bargain. But I actually wonder if literally showing customers the actual profit you make off of an item would really encourage them to buy it. The only items I can imagine that would work for are bigger items that companies usually make little to no profit on. But items like an accessory cable that is normally marked up like crazy I would imagine that would create unrealistic expectations of how low a company should realistically go that is fair.
Most consumers would probably think making 5% profit is good enough for the business as people often don’t think about all the expenses associated with bringing that product to the market. If companies do start doing that I can only imagine that we will start to see those “Tip me please” options during the checkout.