The Reality Reports

The Welcome Mat Strategy : The moment you walk into any store, you're entering a carefully planned space designed to influence your buying decisions. Retailers spend millions of dollars studying how people move through stores and what makes them purchase items they didn't plan to buy.  The entrance area, often called the "decompression zone," gives shoppers time to adjust from the outside world.  Smart store owners place eye-catching displays here but avoid putting important merchandise too close to the door since most people need a few steps to focus.

The Famous Food Court Combo That Never Changes Price: Walk into any Costco warehouse today and you'll find the same deal that existed in 1985: a quarter-pound hot dog and refillable soda for just $1.50.  This price has remained frozen in time while everything else has gotten more expensive. The story behind this pricing decision involves a dramatic conversation between two company leaders that has become business legend.