5 tricks retail uses to sell

marketing

By Lucio Dias Ribeiro ⋅ May 4, 2007 ⋅ Post a comment

Today MSN’s front page an article called “15 ways stores trick you into spending” written by blogger Trent from the Simple dollar, shows how retails trick the sales.

The truth is that a bunch of guys are spending their time figuring out how to make you, actually, US spend more money.

But what do they do? There are tricks that can lead you (and myself expend more money, but if you are able to identify those marketing tricks, you’ll save some money.

List price is just the opening offer. Calling the manufacturer’s suggested retail price the “list price” makes it sound like an item’s carefully considered fair cost. In actuality, it’s the maximum makers expect a retailer to charge.To the extent that manufacturers do suggest a fair price to their retailers, it’s the minimum advertised price (MAP) – or the lowest ticket they’d like to see. This usually isn’t public knowledge. Manufacturers want to give retailers a chance to sell for more, and retailers certainly don’t want to tell you when they’re charging above what they have to.
Sometimes a ‘sale’ isn’t a sale. You’ve no doubt seen an ad like this: “Was $175, is $100!” A study published last year in the Journal of Marketing found that this tactic – called reference-price advertising – succeeds in making shoppers feel like they are getting a deal, Maybe you are, maybe you aren’t.
Price-matching ‘guarantees’ may cost you money. Some companies relying on fact that 92% of buyers don’t come back to claim price difference charge more than its competitors.
The .99 cents trick. Is this work? Yes it does. Why? Simple, Research shows that people process information from left to right.” In other words, the “1″ in $19.99 is more appealing than the “2″ in $20.
The cents trick. It basically makes impossible figure out what is better deal, the 1 kilo for $ 1,27 or 1,5 kilo for $2,36.