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.