Quote:
Originally Posted by Garson
Whether you price it at a simple $25 or $70 with 50% off and a $10 coupon - its the same thing. It's all just a game.
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From the retailers point of view $25 <> $70 with 50% off and a $10 coupon. Some people won’t have the coupon and will buy it at $35. Other people will have the coupon(it lured them in) but will buy additional items (some paints to go with the shirt perhaps or a purse to match the shoes).
It also helps prevent a race to the bottom in terms of pricing. You can be cheaper than your competition on some item but not all items.
There are also laws regarding sales in some states. In short if an Item is on sale it must be on sale for a limited time period. Can’t claim a sale if the item is always going for 50% off of the merchandisers price. It must either be permanently reduced or return to its former price i.e. $70 and a few desperate people may well buy the item at $70 depending on how bad they need it.
Everyday low prices are great when you are Walmart, but if you are not a store where on average most items are cheaper than somewhere else it will just hurt you.