Shop Sales

Airwolf1

I was just pondering about the sales that are going on at the moment. Do people think that shops may just keep reduced prices to try to sell, or will sales (as we know them) stop after January and prices go back up? Who would buy in the current climate if this happened?

If you had a shop, would you be looking at reducing all prices as a permanent move at the moment?

dad-of-4

the problem with discounting the products is that you need to offset the loss of profit with cost cutting elsewhere, in this climate, i would expect the effect to be at best maintaining customer numbers and volume of sales, thoes who can afford to are wise to stand firm and not get drawn into what might normaly be considered a price war.

i think any highstreet retailer who moves onto a permanent discounting will be in serious trouble, having a last ditch fingers crossed attemt to keep the ship afloat.

across the board, the current climate may mean price is of greater importance, but it will never be everything.

MRSTITTLEMOUSE

According to the news this morning,someone said that prices may have to rise as the value of the pound overseas will make buying goods in more expensive.
It just gets worse,does'nt it.

purch

shops may just keep reduced prices to try to sell, or will sales (as we know them) stop after January and prices go back up?

I think the problem they will face is that the doom n gloom of the recession, along with the idea of deflation, is now so ingrained in the public perception, that they will struggle to sell many non essential items without deep discounting.

Those retailers already on tight margins will be in trouble.

Pobby

Just been talking to a wholesaler pal of mine importing by and large from the far east. He describes the price increases in the pipeline, in some cases, as frightening.

All shops differ. Clothing mark ups allow deep price cuts where as many electrical goods carry much smaller margins.

dad-of-4

purch wrote: »

I think the problem they will face is that the doom n gloom of the recession, along with the idea of deflation, is now so ingrained in the public perception, that they will struggle to sell many non essential items without deep discounting.

Those retailers already on tight margins will be in trouble.

but it can also work to the retailers advantage as that ingrained perception leads people to percieve their are bargains out their when they dont nessasarily exist.

im sure im not the only person to have sold on ebay to USA customers at a bargain UK price that was atleast double what it would cost them in the USA. and were not talking must have hard to get items in short supply, so it can only be the perception that ebay is full of bargains, if its on their it must be a bargain.

mean while the realy dumb ones would send abusive messages asking me if ive been smoking crack as my prices are rediculous. to dumbb to realise im in the uk and their viewing the lisint with ebays guestimate of a dollar price.

the bargain hunters paradise of ebay is full of people doing a roaring trade, selling at full retail or even more, perception plays a very big part.

deisigner

dad-of-4

purch wrote: »

I think the problem they will face is that the doom n gloom of the recession, along with the idea of deflation, is now so ingrained in the public perception, that they will struggle to sell many non essential items without deep discounting.

Those retailers already on tight margins will be in trouble.

but it can also work to the retailers advantage, that ingrained perception can lead people to percieve bargains are out their when they dont nessasarily exist.

the bargain hunters paradise of ebay is full of people doing a roaring trade, selling at full retail or even more, perception plays a very big part.

and lets not forget its only realy a bargain if you need it, if not then were just getting mugged at the till as usual.

abaxas

dad-of-4 wrote: »

but it can also work to the retailers advantage, that ingrained perception can lead people to percieve bargains are out their when they dont nessasarily exist.

the bargain hunters paradise of ebay is full of people doing a roaring trade, selling at full retail or even more, perception plays a very big part.

and lets not forget its only realy a bargain if you need it, if not then were just getting mugged at the till as usual.

Agreed, but people also need to factor in personal costs of 'doing the research'.

If it's 20 quid eveywhere but takes 10 hours of searching to find it at 18.99. Is that really a bargain?

Eg just got some new front tyres, main dealer was about 15 quid more expensive than I could get elsewhere. However I needed an MOT at the same time. I just spent the extra, the time and faf to seperate (from living in the country) means 15 quid well spent.

silvercar

If I was a retailer, I would be reducing forward ordering and stock levels; no point being left with stock that you can only sell at cost or a loss.

dopester

abaxas wrote: »

Agreed, but people also need to factor in personal costs of 'doing the research'.

If it's 20 quid eveywhere but takes 10 hours of searching to find it at 18.99. Is that really a bargain?

Maybe not, but other items can be worth it.

How much was your MOT? Standard MOT fee for a car is £53.10, but mine was £27 because I used the MSE advice, and the council had a special offer on with it, which was intended to benefit mostly council workers but was extended to me as a member of the public. (Saving £26.10.. and no worry about a non-council MOT station finding faults to fail you on, which are actually a pass.)

Yesterday I took a trip out.. £10 petrol I'll admit, but got a saving of £55 from retailer price of the item I needed for my car. (Saving £45.. but with a little extra time involved.. no big deal).