{"id":850,"date":"2015-05-24T09:58:07","date_gmt":"2015-05-24T16:58:07","guid":{"rendered":"http:\/\/re-tales.net\/?p=850"},"modified":"2015-05-24T09:58:07","modified_gmt":"2015-05-24T16:58:07","slug":"beware-of-these-pricing-tricks-retailers-use-to-fool-your-brain","status":"publish","type":"post","link":"http:\/\/re-tales.net\/?p=850","title":{"rendered":"Beware of These Pricing Tricks Retailers Use to Fool Your Brain"},"content":{"rendered":"
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\u00a0<\/strong><\/span> \u00a0\"Beware<\/strong><\/em><\/span><\/p>\n

This is from\u00a0<\/span>Lifehacker<\/span>,\u00a0<\/a>\u00a0and most are basics that you already know if you’ve worked in retail for a while. \u00a0Pricing something 99 cents instead of a dollar is like instinct by now. \u00a0I’ve also known for a while that Amazon can track my habits and might show me a higher price for an item if they think I’ll pay it, so I clear my cookies pretty often.\u00a0<\/span><\/strong><\/em><\/p>\n

\u00a0Jacking up prices and then putting out a coupon? \u00a0Happens all the time where I work. \u00a0For Christmas we always get toys and large home decor items that are prominently labeled “$49.99 VALUE!” and then advertised at 25% off or even less but even at 50% off we are still making a healthy profit. \u00a0 I’ve always wondered why someone hasn’t questioned how the “VALUE” is determined, especially when it’s a doll or something that no one in their right mind would pay $49.99 for.\u00a0<\/span><\/strong><\/em><\/p>\n

\u00a0\u00a0\u00a0\u00a0Years ago we always got Christmas cards in that were pre-priced by the manufacturer at a fairly high price and then when they came in we immediately put them out at 50% OFF! \u00a0At some point I heard that a law was enacted that said you have to sell something for at least 30 days at the original price before you could discount them like that. \u00a0 Luckily nowadays it’s much easier to check prices by jumping online on a phone so savvy customers can pass up on the “fake” bargains they are shown.\u00a0<\/span><\/strong><\/em><\/p>\n

Beware of These Pricing Tricks Retailers Use to Fool Your Brain<\/a><\/span><\/h2>\n<\/header>\n
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Retailers are darn good at inventing tricks to separate us from our money. Whether it be through the price points they choose, how they market their products, or their discounting techniques, they are experts at getting inside our brains and influencing our buying decisions. Here are a few of the most popular pricing tricks retailers\u2019 use, along with some easy ways to fight back.<\/span><\/strong><\/p>\n

Decoy Pricing Makes Less Expensive Items Look Like a Deal<\/span><\/strong><\/h3>\n

Decoy pricing is used by retailers to push you towards the purchase of a particular model that pads their profits. The folks at Apple have been using this strategy for years to get consumers to drop money on products that appear to be an excellent value when compared to more expensive models. For example, they currently produce the Apple Watch in thirty-eight different designs, ranging in price from $349 to $17,000. The uber expensive versions are never going to be top sellers, but that\u2019s okay\u2014that\u2019s not their job. Their job is to make the $349-$549 versions look like really good value by comparison. Consumers who might otherwise scoff at the idea of paying over $300 for a smartwatch might not scoff so hard when the alternative is $17,000. To avoid decoy pricing tricks, consider your actual needs first, then find the best version of a product that fills those needs.<\/span><\/p>\n

High-Low Pricing Jacks Up the Price Knowing You\u2019ll Use a Coupon<\/span><\/h3>\n

High-low pricing occurs when retailers put a relatively high \u201ceveryday price\u201d on items, then often lower their prices via coupons and sales events to make it appear like you\u2019re getting a screaming deal. While they\u2019ll never admit it, they never expected you to buy the item at the original price and it\u2019s gravy for them if you do. You\u2019ll often see high-low pricing at retailers like JCPenney, Kohl\u2019s, and Ann Taylor.<\/span><\/p>\n

This isn\u2019t just a brick-and-mortar trick. Many web sites, including American Eagle, Gap, and Banana Republic, are guilty of high-low pricing as well<\/a>. Right before releasing a coupon code, they\u2019ll jack up prices to full retail to make it appear like your coupon gives you an amazing deal. In reality, the site-wide sales events many web sites continually roll out offer more savings than the actual coupon code. At the very least, make sure you can combine a coupon with a sale price to maximize your savings and trump high-low pricing altogether.<\/span><\/p>\n