Sunday, February 24, 2013

Holiday Sales

Another quick hit, if you will.  There was an article published (read it here) that was mostly marketing in its investigation.  But marketing is part of economics... It was exploring different offerings for President's Day sales, and if they really was a bargain.  One part caught my interest, simply because I have followed the company and observed that they market bargains that are perhaps dubious.  They are an air mattress manufacturer, and they have a "special" bed at 50% off!  sounds good right?

Problem is that this company markets a normal line of beds.  When they come out with a special bed, they post it at their website for 30 days at a price they do not expect to sell it at.  After the 30 days they then start to discount.  This special mattress will cost you over $2000.  But is it worth more than other mattresses they sell?  Usually not.  The inflated price is to fit a marketing plan to show a huge discount.  And to make it even more interesting, they offer no refunds on these special beds.  And this site observed that they actually have had the same discount in the past on the same bed.  They will sell a lot of the beds, but the main drive is to bring people to their stores or web site.  The up sell then begins.

They were not alone, there are many companies that do the same thing.  But that is not a bargain, and people should know that if something seems to good to believe, it almost always is!  Instead, by doing research on a product you are interested in owning, and then shopping, you often will save money.  This is true particularly if you shop local.  The largest companies rarely give their people in the field the ability to change the "deal", however a local merchant can, and will if it is feasible and profitable.  We own a small retail store and people ask, "when does your sale end?"  Our answer is that the sale ends in one of two ways, you purchase from us, or our vendor has a price increase.  It is typically true of the big chains as well, but they market it as the best ever, even though as we saw above the price is constantly offered.


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For President's Day or Memorial Day, or any other Day, research, assume that it is not the best deal, and decide what the product is worth before you buy.  Stick to your budget and don't be confused by hype and marketing!  And...

Spend Wisely!

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