REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Seems nuts to me but consumers apparently like playing price games...
You might have seen recently that iconic retailer JC Penney is slumping badly. You almost certainly have seen the reason why: A massive, creative and aggressive new advertising and pricing campaign that promises simplified prices.
No more coupons or confusing multiple markdowns. No more 600 sales a year. No more deceptive circulars full of sneaky fine print. Heck, the store even did away with the 99 cents on the end of most price tags. Just honest, clear prices.
Sounds like a sales pitch aimed at consumer advocates and collectors of fine print frustration, like me. As it turned out, it was a sales pitch that only a consumer advocate could love.
Shoppers hated it.
The campaign, which launched on Feb. 1, appears to be a disaster. Revenue dropped 20 percent for the first quarter compared to last year. Customer traffic fell 10 percent. Last year, the company made $64 million in the first quarter; this year, it lost $163 million. Could we have a moment of silence please for what might be the last heartbeat of honest price tags?
Not only did Penney’s plain pricing structure fail to attract fair-minded shoppers – business reporters wrote with seeming glee during the past few days that it “repelled” them.
Red Tape - 'Fair and square' pricing? That'll never work, JC Penney. We like being shaftedTo oversimplify for a moment, here's Penney's problem. They told the world that retailers only offer their best prices during crazy sales, and Penney stores would no longer host them. Sensible consumers apparently took that information to heart and decided to simply wait for such sales at other stores. As an added benefit, Penney lowered consumers' search costs, because they now knew they didn't need to bother driving to a Penney’s store anymore.
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