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Toy Buyer

Real-Life Activities

Real-Life Decision Making -- Solution

You do not order the toys because you cannot compete against the large retailer.

This option would probably save your store a lot of money because large retailers can afford to sell toys at a lower cost. That's because they use toys to get customers into the store, with the hope that they buy some other products that actually turn a profit. That's how they can afford to sell toys with a loss.

On the other hand, your store might run the risk of conceding customers to the competition. "It might be a very good product," says Newell. "People might want it."