Will the consumers of today’s discounts still be buying tomorrow?
Discounting prices may generate purchases in the short run, but who will pay full price later on for items we have become accustomed to getting so cheap?
I believe that only people who truly value that product or service will continue to purchase after prices return to their higher values!
For instance, before I went to a local restaurant 2 or 3 times a week because of a special that was going on. However, since the sale ended, I haven’t eaten there once.
Also, I’ve been shopping at stores I normally wouldn’t shop at due to the discounted items—I decline to purchase non-sale products.
Additionally, since my perception of a certain brand may somewhat erode away after paying a lower price, I consistently return only to the stores I value the most and those which are most convenient to me.
For example, when I can now pay twenty dollars for a meal that before cost me forty, I ask myself “was this meal really worth what I paid just a few months ago?”
Maybe my thinking comes from the fact that I was raised to believe “you get what you pay for” and I don’t feel like I’m getting a deal any more. In fact, in some instances I feel like I was getting ripped off before!
Therefore, take note of the proprietor who’s goods don’t drop much in price over the next year, the ones who can hold prices true to their brand.
These are the guys that will be on top when others’ prices go back up!
Matt Hale is a GIS analyst at Buxton.