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Quote: Originally posted by Francais on 30/5/2011
Hi arsenaldes. I work in marketing, mostly branded electrical products, for sale to consumers through large retail outlets, product have to first go into store at full RRP for 28 days, this is known as price establishment, a legal requirement, this then allows us to do all the marketing stuff, like save £300! or now half price etc, this is how most companies drive sales against thier competitors, it's a big game realy but it does work, crazy thng is that consmers will buy products when they first arrive into store, surley by now you think folk would wait for the price's to drop, as the nearly always do.
Of course part of this marketing game, is to return the products to full RRP again, once you have sold a shed load and created demand, we call that the cream on the cake.
Been in the business for over 30 years, and the formula has remained the same, as there is always a new bunch of consumers comming through.
It may have been the formula for a long time but that doesn;t mean it's the best formula for the consumer, & lot of people don't think it is.
Nor would it neccessarily mean that going back to having a fixed RRP & retailers not being allowed to just hike it up falsely for 28 days beforehand would hamper sales for retailers. It's a total rip-off a lot of the time these days & favours `the big boys' imp - isn't it the case that as long as it's been the hiogher price even just in one of their branches, they can claim it's been `reduced' ?
I personally feel that the system in place last was better, when a retailer could in theory ask pretty much whatever price they liked, but there was a true RRP from the manafacturer so at least customers knew whether they were getting a real bargain or not, and could make their choice accordingly who to buy from.
Sometimes people buy a new appliance straight away because they actually need one & can't wait - like when the old one is broken, or they're setting up house for the first time etc .. There are still a lot of people who can't afford to buy something new just because they fancy a change.
Post last edited on 30/05/2011 19:55:18
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