Cheap Trick Of Product DiscountsUnity Consciousness #2870

(9azzzzzzzzzzzzzze of 11)

The trick is cheap to implement but it is expensive when consumers fall for the trick.
Consumers fall for the trick long before product discounts are put in our face like goody bait.

One of the most prevalent things during the months of November and December is the use of product discounts.
After the thrill of the spending spree gifting season is over, we can perhaps be better prepared for next year's version and the daily mini-versions in between we can use for practice.

One way to confirm what we already know about cost and price is by watching the TV series Shark Tank. This show constantly reminds us that things don't cost nowhere near the retail price. The retail price paid by consumers if often anywhere from 3 to 10 times the cost. That's 300% to 1,000% markup.
So when there are coupons, sales and discounts and buy one get one free and buy one and get one at a penny and other enticing pricing schemes, the seller is usually still making more than 100% of what the cost was.

Consumers think they are getting deals and steals because consumers base value on retail price; however sellers base value on their cost. So even if we get a $20 item at 50% off, we are still paying $10 for an item that cost them $3 to make, thus we are still paying 300% more than cost, of its actual value. Thus our value recognition has been skewed which keeps us getting screwed.
During most of the year, lots of other consumers are paying full price which is many times over cost. In a few instances some consumers are able to get things seemingly below cost or free, but in most of these instances, the seller is getting reimbursed by the manufacturer. Or the seller is trading a loss on one product to get consumers in the store so they can pay a higher markup on several other products.

All this is like a fish being born with a hook set in its mouth and the bait being switched without taking the hook out. It's easy to reel the fish in, keep the fish on the line and cast the fish back and repeat. In most instances, the fish jumps in the boat to get the bait or swims up to the boat and waits in line for a chance to get more bait.