"Some stuff just doesn't go on sale; High demand, brand cachet can keep prices up" by Ashley M. Heher, Associated Press | January 25, 2009
CHICAGO - .... Nintendo's Wii gaming console still sells out at the list price of $249, Avon cosmetics just boosted prices, Nike is releasing its newest Air Jordan with an astonishing $190 price tag, and designer water can still command as much as $3.99 a bottle.
Those basketball shoes made by kids making $2/day in China!
That's a HELL of a MARK-UP!
While almost everything goes on sale eventually, some products remain untouched by discounts, even in this dismal economy. The reasons fall mostly into three categories: old habits die hard, brand loyalty runs deep, and the law of supply and demand means the most-sought-after brands can command the best prices.
Beyond that, there are some items consumers stubbornly just won't forgo no matter how hard they're trying to stretch their budgets. "There are certain categories . . . where there are no substitutes accepted," said Candace Corlett, president of the consulting firm WSL Strategic Retail. "It's infusing your brand with those things that people then say 'I have to have the real thing.' "
Hey, if you are used to a nutty/crunchy diarrhea shake and they give you a smoothly, you'll notice!
But even companies with products that have traditionally held their value in tight markets are making some concessions, and the number of items that can charge a premium is dwindling as consumers make complicated choices about how they'll spend their money.
My choice? I put it back in my pocket.
Beverly Bailey isn't buying clothes at full price. But the stay-at-home mother from Kenilworth, Ill., will still shell out top dollar for organic milk and fresh produce for her family.
"I'm shopping a lot less and I'm looking for bargains when I shop," she said. But "we have not cut back on those items because we think they're related to health, and we don't want to compromise on health."
Probably a good idea!
"I think retailers are going to have a very tough road, and that's because customers are taking to heart this idea of going green and reducing consumption and making things last longer," Bailey said.
PFFFFFFFFFTTTTTT!!!!!!
Morningstar analyst Kim Picciola said customers often justify paying full price by cutting spending in other areas. "People are making choices, there's no doubt about it," Picciola said. "They're making choices about how they want to spend their discretionary dollars, and in some cases they're still willing to pay full price for brands they're loyal to."
Who has "discretionary" funds? Mine are all tied up in staying alive.
In some cases, however, full price is a subjective designation. Wal-Mart's full price differs from those found at, say, J.C. Penney or Saks. Companies can also opt to drop prices on products instead of promoting a big sale....
I'm still not buying.
