“Sometimes, We Want Prices to Fool Us” by Stephanie Clifford and Catherine Rampell
The article, “Sometimes, We Want Prices to Fool Us” by Stephanie Clifford and Catherine Rampell is about price lowering, coupons, and discounts concerning businesses. Most consumers prefer those retail stores that offer coupons and price discounts. In fact, some customers stop shopping in those places that do not lower their prices. It is unfortunate that consumers do not understand the drawbacks of constantly lowering the price of a commodity. Lowering or granting simpler prices has a negative effect on budgets, inventory, and profits of a business. Before complaining about the set prices, it is necessary for consumers first to understand the business world. When a business constantly grants offers and discounts to consumers, it is bound to incur any losses. As a matter of fact, Wal-Mart did not succeed in employing this strategy in countries such as China and Brazil.
Consumers should aim to obtain good rather than cheap services. Often, cheap services do not last long as compared to those that come at a costly price. Businesses should focus on enticing customers to receive continuous demand. It is known that customers capture specific terms used by salespeople to determine the quality of a given commodity. These salespeople should constantly depict those high values of commodities to all consumers. With this, there is an increase in demand thus the business generates more profits than others. Nonetheless, it is salient to note that setting low prices also have certain benefits to a business. Low prices attract more customers hence a business obtains handsome returns. As a matter of fact, Wal-Mart sells some of its commodities in bulk and at lower prices. They secure more potential customers leaving other retailers stranded. Purchasing those commodities in bulk is more affordable as compared to buying them as single items. With this, customers should appreciate such businesses and not expect much lower prices in the future.