The Weekly Personal Finance Digest – Are Sales Really Sales?
I hope everyone has had a great weekend so far. I know I have enjoyed my relaxing weekend, especially compared to the crazy ones that I have been dealing with the past few months. I don’t know about you, but it is kind of nice to not have any plans every once in a while. I could get spoiled this way.
Well, it is Sunday, and time for this week’s personal finance digest. There was some good stuff out there, but I wanted to highlight one article in particular from Daily Finance. They wrote an article about the embattled JC Penny. After some investigation and employee information, this article notified customers that JC Penny’s sales might not be actual sales. According to the article, JC Penny allegedly hicks up the retail price of an item, just to put it one “sale” for the regular price. This was seen by employees working and some got fed up with it. They didn’t like the practice, so they spoke out.
Now, what gets me about this article is that who didn’t know that this was happening? This practice has been going on in the retail environment for years. I am talking years. Kohls is really good at doing this. They constantly do it with almost every item. How can any company actually have a special price on every item they sell? If you go into a Kohls, you will see that pretty much every item is some percentage off the “regular” price. Why do you think this is the case?
I know why retailers do this type of “sale” discounting. People have been so ingrained to only buy when there is a sale, so why not have a sale every day? I have been buying quick dry golf shirts from Kohls for years. Now, I am pretty used to the price that I have to pay. Every time I go in there, the price screen says that I am saving 60%, but I have always paid the same price each and every time. I have even gone on their “sale” days where it shows that men’s shirts are on sale. The prices are still the same. It does show a big screen with “SALE” on it, but the price is no different than what I paid for my last shirt. That is just the regular price. Now, I buy the shirts because they are a good price and they fit well.
Our culture is all about shopping and spending money, but we want a sale. We love to save money on the items we buy. The only way a retailer can succeed in that such environment is to discount their items. The funny thing about the JC Penny pricing scheme is that when they did away with coupons a year or two ago, people stopped shopping. The prices didn’t change at all. People were still spending the same amount with or without the coupon, but people love to shop with coupons. They spark the spending splurge that people love. That made me laugh a little bit. It shows all too well that our spending mentality is just screwed up. You can only know that you are saving if you actually compared prices.
What do you think of the article? Did you know this was going on?
New Personal Finance Book
I was notified by CreditForums.com about a new personal finance book. It was written by many of the personal finance bloggers that I follow and interact with on a daily basis. I read over the book and really enjoyed it. It is called 21 Days to Healthier Finances. I would recommend you check it out and it is interactive on Credit Forums site. I hope you enjoy.
This Week’s Reads on Debt Roundup
- Encouragement – Spread It Around!
- 5 Rules For Using Credit Cards And Not Getting Into Debt
- Financing A College Education With A Title Loan?
- Should I Turn Off My AC While Away To Save Money?
- Has The Economy Forced Us To Ditch Our Work/Life Balance?
Top Personal Finance Articles
- It’s Not What You Make, It’s What You Keep on Frugal Rules
- How to Negotiate a Lower Bill on Mom and Day Money
- How was the easiest/hardest way you ever made money? on Reach Financial Independence
- 3 Things I Learned from Warren Buffet on Club Thrifty
- Where To Stash Your Savings on Plunged in Debt