Product promotions had existed to a limited extent for decades but expanded dramatically
during the 1970s, partly due to President Nixon's imposition of price controls in 1971 as part of an
attempt to reduce inflation. The combination of high inflation, relatively low interest costs, and
large promotional discounts made the economics of forward buying very attractive for chains.
Product procurement cost depended upon so many different allowances and other incentives
provided by manufacturers that the actual cost of a single product at any one time on the shelf was
impossible to determine. Inability to understand costs and the discounts and allowances available
from aggressive purchasing resulted in a focus in the channel on "buying for profit" rather than
"selling for profit."