11/22/13

How merchant's play consumers with pricing and sales

Many retailers list the “regular” price of an item next to the sale price to show a discount on a potential purchase;
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"Retailers typically use the original item’s manufacturer’s suggested retail price (MSRP) as the “regular” price in the ad, not the price the item is currently selling for on their website. In Bon-Ton’s 2013 Black Friday ad scan, for example, the retailer advertises a $99.97 price for the Keurig K45 Elite Brewer, down from the regular $172, according to Bon-Ton.

If you checked out Bon-Ton’s website at the time of this writing, though, you’d find that same Keurig K45 coffee brewer selling currently for $119.99. Bon-Ton’s Black Friday Keurig K45 price isn’t a bad one – but it isn’t exactly $72 off.

This practice isn’t limited to Bon-Ton. Macy’s 2013 Black Friday ad shows a Tommy Hilfiger faux leather military bomber jacket selling for the Black Friday price of $79.99, down from the regular price of $195 - $250. If you search for the item on Macy’s online store, though, you’d find the same Tommy Hilfiger leather jacket, with the same web id, selling for the same $79.99 price.

...How to beat the retailer: Double check the “regular” price of an item to make sure you’re getting the deal you think you’re getting.
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How can retailers offer such eye-popping discounts on HDTVs, laptops and other electronics? Well, the wares they’re selling often aren’t the cream of the crop. While some retailers simply sell lower-end brands, other less forthcoming merchants hawk limited-time-only TV models designed for the holiday season and Black Friday.

...Derivative products often have fewer features than comparable sets as well.

How to beat the retailer: Check the model numbers you see in ads against the retailer’s current website offering or in a standard web search engine. If you can’t find that specific TV currently on sale at multiple retailers, you might be looking at a derivative product..."

Adapted from http://finance.yahoo.com/news/consumer-alert-4-pricing-tricks-215500462.html

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