topic Re: Sale Prices in Community Chat

Sale Prices

Jordan2 — Tue, 11 Jul 2023 15:45:11 GMT

Why can't stores just sell their products at sale prices everyday instead of drumming up a "sale event"? Most people won't pay full retail price for anything and wait for a sale, they would get more customer traffic everyday. They're still making a profit if they sell it at a discount, the retail price is jacked up. I know supermarkets have what they call their loss leaders, something they're losing money on, but hope while you are in the store you'll purchase more.

Re: Sale Prices

SportyShorty07 — Tue, 11 Jul 2023 15:55:23 GMT

@Jordan2 I agree! I love a good deal and I buy everything on sale and use additional coupons as often as I can. I love designer brands and I can look great by buying all of my things on sale. There are two great grocery store chains in California that I love to go to: Grocery Outlet Bargain Market and Food 4 Less. These stores sell food at bargain rates and even meat at super low prices- they buy items in bulk from other grocery stores and sell at a super steep discount, A lot of tthe items are only there for a week before people buy all of them. I can get tons of meat, fruit and vegetables for bargain prices and even Haagen Dazs ice cream for $2 to $3 a pint at GroceryOutlet Bargain Market. Building a raport with shop owners also helps in negotiatiing pricing- I've known a local pawn shop owner for years and I get great deals on all of my fine gold and gemstone jewelry from there.

Re: Sale Prices

geegerbee — Tue, 11 Jul 2023 17:25:06 GMT

J C Penney tried that tactic and are almost out of business now. People want a SALE. Same with card dealers that advertised lowest price all the time and they wouldn't come down from the price on the windshield----didn't work.

As to the person who wrote about the Food for Less grocery, my husband and I went to one of those once and left without buying one thing. The produce looked old and awful, as did the meat. Turned us off to the whole store. Glad it works for her, though.

Re: Sale Prices

On It — Tue, 11 Jul 2023 17:53:44 GMT

@Jordan2 Retail stores have a slim profit margin. They must pay rent, utilities, employees, insurance, state and local franchise taxes, loss on returned items, and purchase new goods. When merchandise is featured at a sale price, they are losing part of the revenue to pay these costs. They are not still making a profit on sale items.

Re: Sale Prices

Jordan2 — Tue, 11 Jul 2023 19:08:36 GMT

@On It I remember when I took a business class in college the retailers use a formula to come to a price to sell a product, knowing when it goes on sale they are still making a profit (not as much). The fact that a store like Macys has sales all the time and offers coupons means they're not getting customers into stores. I also think Amazon has taken a lot of business away from large and small retailers.

Re: Sale Prices

On It — Tue, 11 Jul 2023 19:39:36 GMT

@Jordan2 wrote:
@On It I remember when I took a business class in college the retailers use a formula to come to a price to sell a product, knowing when it goes on sale they are still making a profit (not as much). The fact that a store like Macys has sales all the time and offers coupons means they're not getting customers into stores. I also think Amazon has taken a lot of business away from large and small retailers.

I do not know what business schools are teaching. I worked as a buyer for a retail store for years. I know what I am saying is true from practical experience.

Re: Sale Prices

Spacrazy — Tue, 11 Jul 2023 19:40:21 GMT

@On It : Well said.

Re: Sale Prices

chrystaltree — Tue, 11 Jul 2023 20:58:54 GMT

Probably because they don't want to take a dramatic loss in revenue by slashing prices. 😂. I don't know what world you live in but in my world, we appreciate a good sale but we do indeed pay full price for things.

Re: Sale Prices

rockygems123 — Tue, 11 Jul 2023 21:16:27 GMT

@geegerbee JC Penney was my first thought too. And @Jordan2 , that buying hysteria created by a marketing sale is nutty isn't it but that's how humans work.

Going to live auctions for my business (antique dealer) the auctioneers can't give away an item if they start at $500. Start at $50 and lots jump in with bids and the item usually goes way over the $500 example.

Drives the auctioneers crazy because their work is beyond quadrupled and drags out the auction.

Re: Sale Prices

Jordan2 — Tue, 11 Jul 2023 23:42:28 GMT

@On It I'm sorry if I offended you I didn't mean to. I was just conveying what I was taught in a class I took.

Re: Sale Prices

On It — Tue, 11 Jul 2023 23:52:18 GMT

@Jordan2 wrote:
@On It I'm sorry if I offended you I didn't mean to. I was just conveying what I was taught in a class I took.

Thank you. No apology necessary. I just wanted to explain how fragile the retail economy is under the best of circumstances.

Re: Sale Prices

granddi — Wed, 12 Jul 2023 00:00:57 GMT

@On It wrote:
@Jordan2 Retail stores have a slim profit margin. They must pay rent, utilities, employees, insurance, state and local franchise taxes, loss on returned items, and purchase new goods. When merchandise is featured at a sale price, they are losing part of the revenue to pay these costs. They are not still making a profit on sale items.

www.vogue.com › article › what-is-the-right-priceWhat Is the Right Price for Fashion? - Vogue

Jun 29, 2020 · The industry standard for a profit margin is between a 2.2 and 2.5x markup,meaning a dress that cost a designer $100 to produce might be sold to a retailer for $220.

topic Re: Sale Prices in Community Chat

Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

Re: Sale Prices

www.vogue.com › article › what-is-the-right-priceWhat Is the Right Price for Fashion? - Vogue