Deceptive Marketing Practices Used By Major Department Stores
I wrote about this 2 years ago... my frustration with the way that some department stores seem to be using deceptive marketing practices to lure shoppers in, and then they fake us out with "sales prices" that aren't really good deals at all. (And we're talking major retailers here.)
Well now, I've finally found some facts to support what I've been saying...
In the January 2008 issue of Shop Smart magazine (published by the folks at Consumer Reports) they wrote this under the headline, "How Sales Can Fake You Out":
The next time you find yourself salivating over a 60% off sale, don't scramble over to the store so fast. Those deals may not be as good as they appear. As savvy shoppers know, retailers do all kinds of things to make it seem as if you're getting a steal."
It gets better...
The gist of the article was twofold:
#1 The fact that some stores use the manufacturer's suggested retail price on their products. While others do not.
In fact, when a store indicates an item's "original" price, in a sales flier, it might actually be higher than the manufacturer's suggested retail price. Why? So they can make it seem like you're getting a great deal when they mark an item down to a lower price (which is often the manufacturer's suggested retail price to begin with!) and call it their sale price.
#2 The fact that some stores run sales so frequently that the "sales price" is really the item's regular price (...at that particular store).
Also from the article:
The stores mentioned in Shop Smart magazine as using these types of sales tactics were: Kohl's, Macy's, and Sears. (Other stores do it too, I'm sure.)
Check out "The Real Deal"... examples from actual sale ads that were included in the Shop Smart article:
I used to work at JC Penney but I changed over to Kohls to try something new. The prices between those two stores are outragously different. At Kohls, the clearence prices are marked 60% off and increase in 10% intervals. Seems like a good deal, but it's not. At JCP, the same type of item is generally lower at its original price, then it goes 50% off on clearance. Soon, that clearance price will have all sorts of discounts and may even go 75% off it's original price. Then there are coupons and better charge card deals than Kohls. I once bought towels for $0.77 each after discounts (and that wasn't including my associate discount). JC Penney has just as many customer disputes as any other retailer, but they seem to maintain loyalty much better than Kohls.
KOHLS shoppers - BE WARY! Have you noticed that EVERYTHING is on sale - always - at Kohls?? Their so-called "regular prices" are inflated and they NEVER sell them at those prices. The "sale" prices at Kohls are what most of the stores sell as their "regular" price. Compare name-brand small electric appliances and vacuums with i.e. Target. I did a study of ten products over two months and it confirms my statements. Kohls' "sale" prices can be more than Target's "regular" prices. I trust Target's honesty in pricing. There have been claims by the states of Massachusetts and Kansas about the deceptive pricing practise. In 2002, Kohls had to pay $500,000 to settle the matter. But Kohls continues to deceive the consumer. You are naive if you assume you're getting great prices at Kohls. PLEASE COMPARE PRICES WITH OTHER STORES.