What if the discounted price is not really a discounted price at all?

[Alexandoy]

I have noticed in the e-commerce here that some of the stores are displaying a sale for their products with such a big discount. One item is the garden hose that has a 90% discount. Would you believe that? Almost all of the gardening products have discounts of 50% to 90% which I dare to say are fake.

In the Chinese style of pricing, the tour guide in Hongkong told us this trick. When the price of the item is 85 then do not ask for a discounted price of 70 or 75. Pull the price down to 50. Most likely the actual price of that product is only 45. That trick is being used by the online sellers that I mentioned. Isn’t that a neat trick for your business?

 

[Mika]

I have noticed this only not only on online stores but even on offline stores. First, they increase the price of their products by 20-25 percent, sometimes even 50-60 percent, and than then give a huge discounts of 20-30 percent. People are attracted to the word discount and they buy the products, the business owners make more money from the product than by selling for regular price.

 

[Jasmine]

The discounted price you see during the sale promotion is not actually discounted price. A lot of businesses reduce the price for two reasons, one they first increase the tag price, and then give heavy discounts; two, the product has become old and is no longer selling, therefore, they give discounts to promote sale.