There is nothing a consumer likes more than saving money and getting a great bargain. Everyone likes the satisfaction of getting what they believe to be a good price, regardless of whether the purchase is a car, a new pair of shoes, or something as minuscule as a soft drink. Some use coupons they receive in the mail, some go to outlet malls, some start shopping at 5am or earlier to catch the heavy discounts on days like Black Friday, and many compare the retail price to the sale price in the aisles to gauge the extent of the savings. It has become increasingly common to do research beforehand on the internet and shop around at multiple stores to find the best deals.
I wouldn’t classify myself as a big shopper and am usually pretty frugal when it comes to spending, but I do love getting the best deal possible on whatever I choose to buy. A few days before coming back to Wake for the semester, I decided to begin my search for a new electric razor. I had been using the same Norelco shaver since freshman year in high school, and although it had treated me well, I finally realized that I was long overdue for an upgrade. I knew I wanted another Norelco on the basis that I never had problems with my original Norelco, and really liked the balance of quality and durability. I began my search online at Amazon to get an idea of what shavers were on the market, their prices, and to read some of the reviews to narrow my choices. I found one I liked most and was about to order it when I remembered that my family had a 20% Kohl’s coupon to use during a big sale that weekend.
I have always had good experiences at Kohl’s and because it is only 5 minutes away from my house, I decided to make a quick trip to see if I could walk away with a good, cheap shaver the same day. I ended up buying the Norelco 7810 on the spot for $65, a slightly better price than I had found online at Amazon. The shaver was listed at the store for $119.99, was then marked on sale for the weekend at $79.99, and I used a 20% coupon from the mail to knock down the price even further. I was happy with my purchase when I walked away from the store and have not felt any post purchase dissonance since. What I have thought about, however, is the strategy that Kohl’s and almost all retail stores are famous for. Marking up items just to slash the prices and persuade consumers that they are getting a great steal.
When someone buys something, especially if it is expensive, they always justify their purchase my stating how much they saved on the transaction. Many stores even show on the bottom of the receipt the savings from the “retail” or suggested price. Are we always saving all this money or are we falling for the oldest trick in the book?
Why did Kohl’s set a “regular” price on the shaver at $119.99, when the highest price I could find on the internet was $79.99? The obvious truth and reality is that they just inflate the price way above what it should be worth just so that it can be reduced, so that consumers are lead to believe that they just robbed the store of profit. Kohl’s is just an example, but they do it with almost all of the items I have bothered to stop and look at. At the end of the day, the daily sale prices are nothing extraordinary compared to the prices at other department stores, and the extra savings from the coupons are valuable, but barely give the store an edge over competitors.
Saving money is one reason why people love deals, but it is not the only one. Walking away with the belief that you saved money can sometimes be more important than the reality of how much you actually saved. Shopping is truly an experience for many of us. The satisfaction of doing research and finding the “best price”, or the personal involvement of cutting out a coupon to get you a better price than others pay, is enjoyable but also a weakness that stores prey on. Stores take advantage of our super savings mentality, marking up items, reducing them with sales or coupons, and leading us to believe that our “fair deal” was a great one.
Dan Pogoda is a Senior Business and Enterprise Management Major at Wake Forest University, concentrating in Marketing and minoring in Psychology.
Dan Pogoda is a Senior Business and Enterprise Management Major at Wake Forest University, concentrating in Marketing and minoring in Psychology.
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