Last week, people set alarms for 3:45 in the morning so they could line up outside Trader Joe’s to buy a tote bag for $2.99.
You’ve probably seen these mini totes by now. Trader Joe’s releases them occasionally, and every time, people lose it — long lines, viral videos, the whole spectacle.
I can imagine the company’s Chief Financial Officer running around the office asking why they’re leaving so much money on the table. Why not charge $10, $15, even more? At $2.99, they’re barely making anything on these.
I can also imagine the Chief Marketing Officer winning that argument. Because there’s a genuinely smart strategy at work here, and it’s not about margin.
