Which means everywhere you go, you are sure to see all stores proclaiming discounts of epic proportions.
As a
50% discount - What it all means
(1) It makes no economic sense for any shops to sell you something below cost price.
So if they say
Usual Price: $100, Now: $50
It can be interpreted as the cost price should be less than $50. So it means
Jewellery stalls come to mind as I am typing this.
(2) Price something expensive so that you can have a sale.
As an implication of (1), stalls should double their price so that they can give attractive 50% discounts.
(3) The Greater Fool Theory.
The original price can sometimes be a "fictitious number". Imagine a box of paper clip with the words
Usual Price: $500, Now:$5
At 99% discount, you will be a "fool" not to get it!
But if you get it, you end up being a "greater fool" because paper clips are not worth even worth $5 (not to mention $500).
(4) Need vs Want
Some of you may have already read the unforgettable lesson that my mum imparted me.
As a kid, there was once when I saw a McDonald Happy meal priced at $3 instead of $4.50. Being the greedy little boy that I was, I asked my mum to buy it for me because its "save 33%" if I buy it. My mum countered that if I don't buy it, I will "save 100%". I was speechless, but found it very true.
Yes, even though Limpeh is greedy when it comes to food, I am still a rational greedy guy.
(5) Discount at the price of another discount
Discounts do not usually stack.
Supposed your credit card normally entitles you to a 15% discount at a retail outlet, and that in a sale, the discount is 50% but you are not eligible to have the credit card discount, it means that the additional discount is only 35%, not 50%.
Having said all these, lets move on to
UP TO 50% discount - What it all means
It just means the shop can have 1 or 2 items at 50%.
And the rest at 10-20% discount.
Enjoy your Great Singapore Sale.
4 comments:
Words of wisdom from Shingo T: 50% off the usual price of $100 means the product's cost price is less than $50. Cool :)
Out-of-season products could be sold below cost. But jewelery?
I prefer Wal-Mart's 'Everyday Low Price'...
Mockingbird:
Thanks!
Kheng Siong:
The other thing that could be sold below cost are consumables that are nearing expiry dates. I see that alot in the Singapore night markets. =p
Retail usually sell things at 700% above cost.. so do your maths bah.. :)
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