Members Ernest Buckley Posted September 16, 2010 Members Share Posted September 16, 2010 So I belong to Costco and BJs... you know those wholesale markets where you pay an annual fee and get discounts... I`ve been thinking about this for a few weeks... I pay about $50/year to get access to these places and about once a month I get a book full of coupons that I need to clip out and then bring them to these stores to get further discounts. It makes no sense to me. What exactly is the point of a coupon? Just give me the damn discount! I already payed my membership fee so why put me through the hassle of a coupon. I swear, there must be someone making an awful amount of $$$... why else would a coupon be necessary? Just lower the price of those selected products if you want to move them. Right? Link to comment Share on other sites More sharing options...
Members spokenward Posted September 16, 2010 Members Share Posted September 16, 2010 The idea is to get people to do something - now.It operates on a number of levels. Stores typically use them to chargeback coop advertising (underwriting the distribution of their ad circulars. Some mfrs. have sales programs that allow advertising allowances as a percentage of purchases). Mfrs participate to assure a timely layout of product into the stores. Customers associate the circular with a promotional cycle and buy out beyond their immediate needs. Warehouse stores mainly want an extra $10 everytime you checkout Think about the psychology of Costco. They want you to feel like you have a buying advantage. Everything they do tries to convince you that you are missing something if you don't use those advantages. And each time you checkout they get another whack at upselling an "executive membership" or AMEX. Link to comment Share on other sites More sharing options...
Members Ernest Buckley Posted September 16, 2010 Author Members Share Posted September 16, 2010 The idea is to get people to do something - now. It operates on a number of levels. Stores typically use them to chargeback coop advertising (underwriting the distribution of their ad circulars. Some mfrs. have sales programs that allow advertising allowances as a percentage of purchases). Mfrs participate to assure a timely layout of product into the stores. Customers associate the circular with a promotional cycle and buy out beyond their immediate needs. Warehouse stores mainly want an extra $10 everytime you checkout Think about the psychology of Costco. They want you to feel like you have a buying advantage. Everything they do tries to convince you that you are missing something if you don't use those advantages. And each time you checkout they get another whack at upselling an "executive membership" or AMEX. Thats pretty much what my wife told me. Link to comment Share on other sites More sharing options...
Members nat whilk II Posted September 16, 2010 Members Share Posted September 16, 2010 The idea is to get people to do something - now. It operates on a number of levels. Stores typically use them to chargeback coop advertising (underwriting the distribution of their ad circulars. Some mfrs. have sales programs that allow advertising allowances as a percentage of purchases). Mfrs participate to assure a timely layout of product into the stores. Customers associate the circular with a promotional cycle and buy out beyond their immediate needs. Warehouse stores mainly want an extra $10 everytime you checkout Think about the psychology of Costco. They want you to feel like you have a buying advantage. Everything they do tries to convince you that you are missing something if you don't use those advantages. And each time you checkout they get another whack at upselling an "executive membership" or AMEX. Correct on all counts...the coupon thing is part of the wholesale processs built into the system upstream from the consumer for lots of manufactured stuff - especially those products that have splintered into uncountable variations on a theme like shampoo, toothpaste, canned ever-so-slightly-pre-prepared foods (chopped tomatoes as italian or mexican or no-salt or with x or y, or xy, or organic versions of all the prior, etcetctetc.) Think of a few thousand Marketing Master's degree folks working up spreadsheets to tweak inventory movement via a whole bag of tricks, some reliable, some traditional, some experimental. Thanks guys! What would we do without you! One other thing is simply cross-selling. "Oh, we've got to go to Costco because they have an incredible deal on refried beans in 55 gal drums" and of course when you get there, you realize you'll need at least 20 gallons of salsa, and you also impulse buy the 30 lb cannister of praline turtles, etc. Actually, when all is said and done, if you are the sort of person who shops carefully and actually endures the humiliation of turning in coupons, shopping the really big sales like after Christmas and other off-seasons, you can live as if you make twice as much money as the other guys who have no patience for such fussy, stingy, old-ladyish methods. Ahh, the irrationality of it all - you can just feel it in the air! nat whilk ii Link to comment Share on other sites More sharing options...
Members Ernest Buckley Posted September 16, 2010 Author Members Share Posted September 16, 2010 Correct on all counts...the coupon thing is part of the wholesale processs built into the system upstream from the consumer for lots of manufactured stuff - especially those products that have splintered into uncountable variations on a theme like shampoo, toothpaste, canned ever-so-slightly-pre-prepared foods (chopped tomatoes as italian or mexican or no-salt or with x or y, or xy, or organic versions of all the prior, etcetctetc.) Think of a few thousand Marketing Master's degree folks working up spreadsheets to tweak inventory movement via a whole bag of tricks, some reliable, some traditional, some experimental. Thanks guys! What would we do without you! One other thing is simply cross-selling. "Oh, we've got to go to Costco because they have an incredible deal on refried beans in 55 gal drums" and of course when you get there, you realize you'll need at least 20 gallons of salsa, and you also impulse buy the 30 lb cannister of praline turtles, etc. Actually, when all is said and done, if you are the sort of person who shops carefully and actually endures the humiliation of turning in coupons, shopping the really big sales like after Christmas and other off-seasons, you can live as if you make twice as much money as the other guys who have no patience for such fussy, stingy, old-ladyish methods. Ahh, the irrationality of it all - you can just feel it in the air! nat whilk ii Yes, its just so exciting... (said with a lisp) Link to comment Share on other sites More sharing options...
Members Beck Posted September 16, 2010 Members Share Posted September 16, 2010 Yes, its just so exciting... (said with a lisp) Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.