Dr Winston O Boogie jr |
07-22-2014 01:23 PM |
Quote:
Originally Posted by mulligan
(Post 911537)
If you actually pay attention to marketing and advertising (Shopping at the outlet malls comes to mind), nowhere does it say discount. Outlet simply means a place to sell their goods. That being said, retail pricing credibility disappeared years ago. For example, I believe that when Macy's has a sale going on, the discounts are so deep, the next step would be to pay you to take merchandise home. Nobody pays full price except out of desperation.
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Having worked in big box retail for a few years, I came to discover that very little merchandise is ever actually "On Sale". The only time things actually go on sale is when the are being discontinued.
We would have sale items in our weekly flyer. So every Saturday before the flyer came out on Sunday, we would have to go and change all price signs to a "SALE" sign. Usually that meant that the item went from being $19.99 to $19.97. The numbers at the end of the price are actually codes for different categories of pricing. Of course all of those pricing signs had something like "Regular Price, $40.00..You Save $20.03". The truth is that the store never sold one of that item for $40.00. The come to the store from the manufacturer pre priced at whatever the store requests.
As an example, the wholesale price of an item is $10.00. The store requests that the manufacturer labels the item $40.00. The they "mark it down" to $19.99 and almost never sell it below $19.97 or $19.95 until the item gets discontinued. Then they will sell it a $15.00 for a few weeks and then $10.00 for a few weeks. Finally when they have almost none left, they will sell the few remaining pieces to a discount outlet like Marshall's for $3.00 each.
In fact some of these chains have become so big and so powerful that they don't even have to put discontinued items on sale. They send them back to the manufacturer for a full credit and the manufacturer sells them to the discounters for their original cost. So that $10.00 item that they originally sold to the big retailer, cost them $5.00 to make. They sell the remaining small quantity to a discounter for $5.00. Then the discounter sells it for $9.99.
The words "ON SALE" in big box retail simply means change the type of sign.
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