The More You Buy, The More You Save!

http://www.msnbc.msn.com/id/27893462/
I hear a lot of advertisements that promote sales where “The more you buy, the more you save.” I hate those ads...however, this mindset is especially true this holiday season. The article, from MSNBC, is about the discounts many retailers are being forced to offer. Sales were forecasted to be low for these months, so retailers cut back on orders. However, even their modest forecasts have been too high, forcing retailers to take on hard-to-sell inventory. This has put all the power on the buyer. The buyers are able to negotiate for lower prices to compensate for the current financial crisis. The article seems to focus on the bigger ticket items while still stating that apparel will also be discounted. Items like baseball tickets, luxury hotel rooms, cars, HDTV’s, and overseas flights. Electronics are doing the same thing now that the iPhone and PS3 had to do earlier and that is cut price. With the iPhone and most electronics, consumers are more hesitant to by once it gets past the $400 barrier. However, once below that number, consumers let down their guard. Much like the way $1.99 sounds more attractive and seems like a better deal than $2.00, electronics experience the same phenomenon. With the rise of smaller manufacturers of HDTV’s and other electronic devices, we may see price points in the range that hasn’t been seen before.