Talked to the guy running the taco truck near my job and he told me his profit margin on the $3 fish tacos is actually thinner than the $5 ones

He said the fish costs him way more but he keeps the price low because people come for the loss leader and then always grab a $2 horchata or an extra order of elotes, so now I'm wondering what other cheap menu items are secretly hooks to upsell you on the sides.

2 comments

2 Comments

grant.richard5d ago

Hold up, "loss leader" isn't really the right term here. A loss leader is when you actually sell something below cost to get people in the door. If his profit margin is just thinner, that means he's still making some money on the $3 tacos, just not as much. The real trick is that he's using a low price to make you think you're getting a deal so you'll fill up on the expensive stuff. It's more like a psychological hook than an actual loss. Plenty of places do this with cheap burgers or pizza slices too, they bank on you grabbing a $4 soda to make up the difference. The fish taco isn't a loss leader, it's just a good price that feels like a steal.

evanr795d ago

Right? That's exactly what I've noticed at this burrito joint near my house, they've got a $2.50 taco special but you're looking at $12 for a loaded burrito. @grant.richard nailed it - the cheap tacos are just bait to get you craving the real money makers on the menu. It's wild how many places copy this model, and it works every time because you don't realize you're being played until you're already three drinks deep.