It's truly funny how vendors can afford to offer such savings once a year and expect to be in the black but the rest of the year they try to stick it to the customers.
Let's say for instance, they offer a 30 or 40% savings over their original price, this just tells me they've overpriced the items 30 or 40%. Frankly, it's just a rip off or a lost leader. Auto manufactures do this all the time. They'll offer a 30% savings over the MSRP and then also offer $1500 back on purchase. Just a bunch a crap! Instead, they should just be offering the vehicle for 35% less what they originally price the vehicle at.
What's funny is people really feel their getting a big savings. Everything they buy is marked up to full retail value, then discounted. They'll wait for hours on end, some overnight in parking lots, in front of doors, then push and shovel to get what they want and in the end still get minimal saving. It's just a big scam to get people out purchasing. After you take in consideration they're only attempting to rid themselves of overstock at reasonable prices and should be normal everyday pricing. It's just not worth the effort. Very few stores can afford to give a potentially large discount on products, as their overhead is so large.
Walmart, Sears, Penny's and more all use what is called a
lost leader. Otherwise, they'll mark down a potentially popular item below cost to get you in the door and then markup the loss on other similar items to make up the difference. Most people aren't smart enough to shop around first to get the best price. It's nothing but a come on.
You can Internet shop for less and find considerable saving over retail store pricing. The only difference is, you'll just have to wait for it to be delivered. You can do it quicker and more reliably. My wife and I've pretty much given up on retail store shopping because of the inflated pricing. We still shop for hardware items locally and some clothing but other than this, most is done on the Internet. We shop at the base commissary for food and rarely go to other grocery stores.
Vendors have gotten way to greedy in an effort to make a higher profit. With vendors using tier pricing, lost leaders, 10, 20 or even 30% off full MSRP markup sales, your just not getting a real savings. Most stores can afford to lower there cost by 25 to 40% and still make a generous profit but refuse to do so. So it hurts them in the long run. If people would realize how many points retailers mark up items, they'd stop buying from them all togather until they lowered their retail costs.
If they really want to make money, lower the price to where it should be and sell a larger amount. That's how you build a reputation, not waiting for specific holidays to make a possible large profit and gouging the consumer during the year.
It's all just a big joke on the consumer!
Cheers
Jeff
Black Friday Blah! Not worth the effort.
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