The Retail Sales Scam

The next time you go to a store and see an item marked sale you probably assume that the sale price is lower than the original retail price. Not so fast. In the case of a failing business, liquidators take over and may leave the price the same, or in many cases raise the prices, slapping a sale sign on the items in hopes of duping the consumer into buying an overpriced item. Another tactic is price baiting.That is the practice of lowering the price on some goods in order to entice the consumer to come in to the store, where they will subsequently be hit with the high price sales scam. If anyone went to the Mervyn’s going out of business sale, you may have seen these tricks of the trade in action. Apparently it worked very well, because it appears that Mervyn’s was able to unload most of their junk.

Not everyone falls for the scam though, and as a consequence the National Retail Federation has come up with a new scam. They want president elect Obama to implement tax free shopping holidays, with the states’ lost tax revenue reimbursed by the feds. Now where would the feds get that money? You got it, straight out of the pockets of the consumers the NRF is trying to scam. Another bailout request.

Retailers have cut their own throats with the outsourcing orgy of the last several years. Now, instead of modest sales from working Americans, they are stuck with cheap crap from child labor factories that Americans cannot buy, because they have lost their jobs, and there are no available jobs to replace those, because they are overseas. Business suffers, the consumer suffers, even the cheap labor suffers because they are now unable to unload their wares.

The NRF fails to understand a very simple concept: If a consumer has no job, they will not buy what amounts to non-essential items most of the time. Made in the USA. That is what built this country into an empire. Apparently modern business has forgotten that, and another bailout will just encourage more bad business strategy.

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2 Responses to The Retail Sales Scam

  1. So true! The local K-Mart near me is closing down and they are advertising deep deep discounts. My Braun toothbrush of 8 years was dying so I thought this would be a good time to pick up that $100 item for 25% off. I found the last one without a price tag but not only do I know the price I saw K-Mart had advertised the item for $54 on the website. At the checkout the girl rang me up for $106 (tax is 6%). I objected and demanded a manager. The manager obviously over worked verified the price was marked down 25% and $100 was correct AFTER the markdown. She shuffled away refusing to negotiate. The checkout girl asked if I still wanted it and naturally I said NO. Then she leaned forward and said, “Last Saturday the manager had us all stay late and mark everything in the store up 30%, so that’s probably what happened.”

    On a related item, GMA had this stupid woman on Monday telling people they could negotiate for underwear and basically everything. This lady walked into Best Buy where she found a large screen LCD TV marked down from $1800 to $1350. She tried to get the manager to come down more and he refused. It was marked $450 down. She wound up at PC Richards where she finds the same TV not on sale for $2200. She negotiates it down to $1700 and buys it. She concludes she got a better deal because she negotiated. How was the idiot producer who put that on the air? Since when it $1700 better than $1350? Yes she negotiated $500 off but the other place started lower and then was marked down $450. In the end she paid an extra $350 and was excited to do so because she felt she was in control. Geez, I want to open an overpriced electronics store where every purchase is a negotiation. People would leave feel tired but like victors. There are SO many idiots in America!

  2. rjjrdq says:

    Unfortunately there are so many consumers like the lady you described buying the tv that these types of practices will continue.

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