They have little debt: Only very rarely do they turn to banks or debt markets for financing. Instead they rely on self-financing or supplier credit. 8. They control as much as they possibly can: This means they carry only their own brands (Dell , Ryanair , IKEA ); even Aldi ’s assortment is over 90 % private label. They also exercise strong control

Premium pricers shy away from special offers: They are hesitant to offer promotions and special offers. If the promotions they offer are too frequent or too steep, these instruments can endanger the premium price position.

quality you bought endures long after you have forgotten the price.

In other words, the pain we feel from a loss is greater than the happiness we feel from a gain, even if the magnitude of the loss and gain themselves is equal.

Thesis 1: Flat rates mean that the vast majority of light users subsidize a small minority of heavy users. Thesis 2: Flat rates lead with a high probability to lower revenue and profits. From an economic standpoint, flat rate s make no sense.

We are constantly making decisions about whether something is worth our money, or trying to convince others to part with their money.

Three reasons explain why Aldi’s return on sales is more than double the returns of a traditional supermarket: higher efficiency , lower costs, and capital management

The project in 2003 revealed an intriguing insight. The BahnCard 50 customers saved on average just under 30 % off regular prices.

Three reasons explain why Aldi’s return on sales is more than double the returns of a traditional supermarket: higher efficiency , lower costs, and capital management