Wednesday, November 27, 2013
World of Finance: Price drama that retailers play
I wrote long time ago about how the prices end up on .99 or .95 and I have noticed that not only in the U.S. but other countries too, maybe because they are copying from the U.S. or have conducted their own survey to suggest that those numbers are the psychological numbers where people buy their products. But there are other ways the retailers use prices to lure their customers and it can include discounts, point, price comparison, loyalty cards, sales, early bird specials, limited time deals and other tricks they have in their sleeves. And nobody has the time to see if the prices are really down from the actual prices or are the same by looking at the original price and then putting a line on it and giving it a lower price which may actually be the same price it may have sold a few weeks or months ago. Because the store rarely sacrifices their margin by giving sales and discounts. And I have noticed one more thing that when a department store or any store for that matter is having a going out of business, losing a lease or going bankrupt, you should notice the prices of their products during their normal store hours or in happier times and now when they are having a to liquidate all their inventory, the prices are rarely at the discount level and are even higher than the original prices. Maybe the owners want to recuperate as much or even more from the unsuspecting customers or they think that the customers don’t remember the prices before, but this is highly deceptive and unfair.