A wall Street Journal article wrote about some of the tricks that retailers play when it comes to deals. It is tough to be in retail these days. Keep in mind that retailers have had to offer deep discount items all year long in order to get consumers to buy. America’s Research Group found that more than three-quarters of shoppers want discounts of 60% off before making a purchase. That of course, is a classic sign of deflation.
Consider the price volatility. Just between November 1 and November 19, Amazon changed prices on items 666 times on 180 popular items. This was according to Market Track.
So how do you make the most money if you are a retailer? Simply let the trickery begin – Here are some tricks to be aware of-
Retailers will make the pricing complex to keep pricing to avoid transparency. After all, they don’t want consumers to be able to compare apples to apples with other competitors online.
Stackable promotions is another tactic that they use. This is where they give to different percentages off of the same item. For example, say an item cost $100 and you get 20% off that price plus an additional 25%. This attracts buyers because they think that they are getting a bigger percentage off then the really are.
Percentages versus Dollars Off
Retailers will confuse the consumer by using percentage savings or dollar savings. Shoppers also have a tendency to get confused over whether a dollar amount versus a percentage off is the better deal.
Take an example where the retailer is giving either $25 off the first purchase made or 30% off. The consumer tends to flock towards the dollar figure because they can see the $25 when in reality the 30% ends up being a bigger discount than the $25.
Bottom line is that you have to be a smart shopper. Retailers are fighting for your business even more than ever and at the same time still trying to make a profit while giving the appearance of a good deal.