Why Fair and Square Pricing Fails

Purple and White Speech Bubble Clothing Logo-2I like for the price to be the price. But, I must be one of the few people who think that way. Fair and square pricing works for me: I can budget for what I need to purchase, and know when it is okay to splurge a bit. However, I have a dear friend who won’t buy anything unless she negotiates a better price. This practice is downright embarrassing at times. Recently, we were in a charity thrift store and she saw a large ceramic vase filled with fake flowers. (I know, taste varies.) Anyway, it was priced fairly, but she stood in line to ask a harried clerk to lower the price by $5. The clerk said, “The price is the price.” My friend walked away. “It’s a charity,” I reminded her. As we got into the car, my friend made up some excuse about the quality of the item. But, I know her. No discount, no sale is her motto.

I’ve sold items on eBay for almost a decade. But, recently, I’ve been rather frustrated with the “Buy it now or best offer” feature on eBay. As a seller, I prefer to list an item at the price I want for it, and my potential customer can pay for the item and the shipping (which isn’t free, so I never pretend that it is) or not. However, if sellers don’t activate “best offer” when creating the listing, eBay will do it later, and before long, I start getting half price offers. Yep, the default “best offer” setting is literally half price. I hate telling customers, “no.” And, I have learned that counter offers seldom result in a sale. Lately, I have been listing items a couple of dollars more than I normally would ask, then setting the best offer for the real price. Yes, the whole thing bothers me, but many, many shoppers want to feel that they got a discount, especially on really low priced items. I’ve literally gotten an offer of $2 on a genuine leather designer handbag.

And, this gotta have a discount mentality is not just for used items, such as the pre-owned books and garments that I generally list in my eBay store (The Alternative Article.) Remember the absolute disaster of “Fair and Square” pricing at J.C. Penney? Although I am not particularly fond of that merchant, I really liked their pricing when that experiment was underway. Apparently, I was alone, however. J. C. Penney customers stayed away in droves until the management jacked up the prices and paid newspapers to print coupons so customers could “save” 40% off.

It’s psychology. And it sucks.

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