Many Discounts

Many Discounts - Many Discounts, Few Deals n December, It...

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Many Discounts, Few Deals I n December, It Takes a Calculator to Avoid Retail Traps; Why We Fall for the Number 9 By CARL BIALIK , ELIZABETH HOLMES and RAY A. SMITH Bryan Derballa for The Wall Street Journal A Gap store's 'buy one get one' deal, or BOGO, offers 60% off a second item. Tick-tock, watch the clock, stores are telling holiday shoppers. Looking to inject a sense of urgency into the holiday shopping drill this year, many major stores are running their own versions of the online "flash sale," cutting prices, in some cases for just a few hours at a time. While many holiday consumers refuse to pay full price, retailers are trying to outdo one another by encouraging shoppers to spend more, but without giving away the store. Elizabeth Holmes discusses some of retailers' most popular discount tactics.
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It's Math Time for Shoppers View Interactive See how well you understand some of the types of deals retailers use during the holiday season. More photos and interactive graphics Limited-time offers are just one item in the battery of sales events, "savings passes," buy-one- get-one-free offers and volume discounts that retailers are letting loose at the height of the December shopping season. Companies want to outdo rivals and encourage shoppers to spend more than they might have otherwise, but without giving away the store. The stakes are high, with holiday sales contributing as much as 40% of annual revenue and 50% of annual profit. With harried shoppers hard-pressed to do the math, retailers put a lot of psychology into their holiday prices. They decide which numbers will be most enticing, and whether "50% off" sounds better than "buy one get one" offers—known as "BOGO," in industry parlance. Gap Inc., for example, offered 50% off everything in their stores until 10 am on the Friday after Thanksgiving. The next day, it was selling kids' clothing for flat prices of $5, $10, $15 and so on. That meant girls' tulle skirts, with a full price of $29.50, were available for $15 on Saturday—25 cents more than on Friday, when they cost $14.75. View Full Image
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Many Discounts - Many Discounts, Few Deals n December, It...

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