With all the articles and products sold in a sports shop, I cannot see reducing the profit margin on one product being a bad thing, especially if it encourages more customers to frequent a store, and they in turn buy a few articles of terminal tackle at normal retail margins.
Now in all fairness I have no idea of the competition you face, yes I use your online order system but I do not know the area where you operate from, or the competition you face. Here in Hawke's Bay there are no end of sports retail outlets, all charging much the same price for bait ... too much.
I feel it fair to tell you I ran the sports department of Stirling sports for three months so I am very aware of the mark up on fishing gear. I have no intention of repeating them on here, but I do know there is room for movement.
I used the local FCO store on the weekend, their bait prices were so high I walked out and returned to another shop. The woman in the store asked me if I was a club card holder, I replied no, I am a cash customer, she told me as such she was unable to reduce the price of the goods I was willing to purchase. This lady just couldn't see she was losing my money (cash) from her day's takings ... FCO's loss, another shop's gain. Had she reduced the price of the bait by a couple of dollars she would have put $58.00 in her cash register. Sorry, I think such a system of retail is damn silly but the other shop I visited was very happy.
When in retail, too long ago for me to willingly recall, I was trained under the maxim, through this door walk the most important people in the world, our customers, sadly now long forgotten. I was also taught when we had a promotion, every customer was made aware that product was on special. A notice on the counter suggesting that anyone who purchases $10.00 worth of terminal tackle can buy pilchards at few dollars off could work wonders for sales.
Salesman and women were trained in those days, I served an indentured apprenticeship. I can assure you this sort of salesmanship works, it's called personal service. You may offer this service in your business, sadly shops here in the bay do not.
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