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When I asked my supermarket manager why an item (which shall be nameless for the purpose of my illustration) was priced at £2.99 he said because people expect to pay about that for this nameless item, although it could be sold at a much lower price and still make the company a profit and that's how, for example, we are able to take 50% off at Xmas should sales slump and only dent our profits.
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