[JoAnneM]

Conundrum: : a question or problem having only a conjectural answer

While out shopping and listening to the radio I was hearing ads for incredible sales. One ad I heard was for $700 coats marked down to $170, and this was at a very expensive store.

My question is this: are people going to go to the stores they usually shop at, take advantage of the sales there, and thereby spend less money this Christmas; or, are they going to go to the more expensive stores, buy better quality goods and spend the same amount or even more than usual.

I just wonder what it would take for someone to change their shopping "habits".

[helene_t]

I will not buy anything before the January sales anyway. If the January sales start in December I am likely to miss them.

[Al_U_Card]

We are watching the prices of computers and from the looks of things, Dec. 26 and later is the way to go...

[keylime]

Same thing with cars, Boxing Day and after is great.

[kenberg]

We have been talking some about changing our approach to Christmas. As a general rule, I like to join in the Christmas buying spirit but I can enjoy this just fine without huge expenditures.

The main issue, and I should preface this with an old grouchy grinch alert, is that it is very difficult to think of anything for the modern child that s/he wants but does not already have. One of the most successful presents was several years ago when my oldest granddaughter was middle school age. The present was that we took her with us to a lodge where there was no pressure to do anything. She took an hour long bath. She hiked when she wanted, read when she wanted, went to bed when she wanted, got up when she wanted. For the modern highly scheduled child this was close to Heaven. She is now sixteen. Her present this year is unusual. We have bought a pig in her name as a donation to a needy family. We will see how this goes as a present. I have faith in her and I think it will go well.

Anyway, we are shopping as usual but we never do shop all that much.

Merry Christmas to all,
Ken

[kenrexford]

I'm buying everyhing I can get my hands on, with credit. I plan on asking for a bailout. Unfortunately, though, Dear Old Dad ain't bailed me out for twenty years or so.

[Fluffy]

I recently opened a shop, and the question that should arise to you actually is: If they can sell it for 170$, how much do you think it costs to them?, and they wanted to sell it for $700!!

[JoAnneM]

I used to be in business to, albeit the wholesale farm equipment business, but is the cost issue really that important? Just about every major department store sells their fine jewelry at 50% off all year round, so you just accept that the sale price is the real price.

Besides, every store has its "loss leaders" and those truly are bargains, if you can pick them out.

You opened a shop in a difficult economic time - the best of luck to you.

[Lobowolf]

Fluffy, on Dec 17 2008, 08:02 PM, said:

I recently opened a shop, and the question that should arise to you actually is: If they can sell it for 170$, how much do you think it costs to them?, and they wanted to sell it for $700!!

Is the question, how much does it cost them to buy the item, or how much does it cost them to lease the property, pay the utility bills, the costs of the goods they sell, the salaries and benefits of their employees, their insurance premiums...

[kenberg]

At one point in my life I worked at Al's Discount Furniture where everything was 1/3 off. Mostly I delivered furniture but I also wrote out the price tags. Al would give me a list of prices, I would add 50% to get the "original price", then we would mark it down 1/3.


I thought of this past life of mine while buying coffee beans today. Starbucks is offering its Christmas blend at 20% off. Uh huh. 20% off of something, no doubt. I bought it, no problem, but I chuckled doing it.

Those coats might really be $700 coats. Anything is possible.

[TimG]

JoAnneM, on Dec 17 2008, 03:50 PM, said:

Conundrum: : a question or problem having only a conjectural answer

While out shopping and listening to the radio I was hearing ads for incredible sales. One ad I heard was for $700 coats marked down to $170, and this was at a very expensive store.

My question is this: are people going to go to the stores they usually shop at, take advantage of the sales there, and thereby spend less money this Christmas; or, are they going to go to the more expensive stores, buy better quality goods and spend the same amount or even more than usual.

I just wonder what it would take for someone to change their shopping "habits".

I don't think anyone really believes % off gimmicks, anymore. They look at the bottom line and determine whether they want to spend that much on the item. Sure, people will wait until a price comes down to a certain level, but that level is in absolute terms rather than in % terms; it has to be under $100, not it has to be at least 65% off.

I have made zero Christmas purchases this year and don't expect that to change in the next ten days. But then, I have a 12 year-old daughter and a 10 year-old son, neither of which has ever received a Christmas present from me.

As an aside, I don't think any coat is worth $700. I really don't mean to be insulting to anyone, but what would possess anyone to spend $700 on a coat?

[Lobowolf]

TimG, on Dec 18 2008, 12:10 AM, said:

As an aside, I don't think any coat is worth $700. I really don't mean to be insulting to anyone, but what would possess anyone to spend $700 on a coat?

It's all relative. Lots of people wouldn't miss $700.

[jillybean]

The person who would buy a $700 coat has already purchased the coat well before the sale. Perhaps they bought 2 of different colors to match the new pairs of shoes and bags in their closet. The store is trying to attract the consumer who would never spend $700 on a coat but just couldn't pass on such a bargain. This person buys the coat and later regrets the purchase, even at a “bargain” $170. It won’t be worn often because she doesn’t have the shoes and bag to match.

I have become a scrooge when it comes to Christmas presents and spend probably $10-$20 per gift. Our daughter gets so much “stuff’ all through the year, Christmas is a time for giving back.

[Codo]

To the original question:

Both.

Most here seem to be quite different from the masses, because most buy before christmas. Most are influenced by adds and buy when something is 30 % off.


And I guess there are coats which are worth much more then 1000 $. And of course there are reasons why you want to possess such a coat:

1. You want to impress you neightbour.
2. You don't know what to do with your money.
3. It is good looking.
4. It is much warmer then anything else.
5. It is comfortable.
6. You can wear it for years, not just one season.
7. It is a present to the one you love.

Of course not all reasons are valid for everybody.

[helene_t]

kenrexford, on Dec 18 2008, 01:09 AM, said:

I'm buying everyhing I can get my hands on, with credit.  I plan on asking for a bailout.  Unfortunately, though, Dear Old Dad ain't bailed me out for twenty years or so.

rofl

Couple of years ago when the dollar was dropping with enormous speed and Americans where exceedingly worried about their finances, there was this cartoon with a young boy on Santa's lap:

Santa: "You have been a good boy. What can I give you for Xmas?"
Boy: "Just pay me cash. Preferably in Euros."

This time the answer could be "doesn't matter, our creditors will take the presents anyway. But if I could ask you to bail us out"

[brianshark]

I think that people are more fooled than they should be by % off discounts. I know that intelligent people should "know" that the big yellow sale sign is often a gimmick, but in reality they don't intelligently process all the information available to them in a cold calculating manner. They tend to use their gut feeling to determine whether the item in question is worth it or not, and having a big sale sign hanging off it makes it 'feel' more like a bargain.

[TimG]

Codo, on Dec 18 2008, 03:51 AM, said:

4. It is much warmer then anything else.

I was wondering about that. Take a look at this.

I'm sure there are parka's for more extreme conditions, maybe for those participating in the Iditarod or climbing Mt. Everest. But, for 99.99% of us this should do the trick.

[PassedOut]

kenberg, on Dec 18 2008, 12:00 AM, said:

At one point in my life I worked at Al's Discount Furniture where everything was 1/3 off. Mostly I delivered furniture but I also wrote out the price tags. Al would give me a list of prices, I would add 50% to get the "original price", then we would mark it down 1/3.


I thought of this past life of mine while buying coffee beans today. Starbucks is offering its Christmas blend at 20% off. Uh huh. 20% off of something, no doubt. I bought it, no problem, but I chuckled doing it.

Those coats might really be $700 coats. Anything is possible.

During my college days, I took a year off to save money and took an office job at Waldorf Paper Products in St.Paul, Minnesota. I shared a small apartment off University Avenue with a high-school buddy.

After work each day, I would take the bus and exit several blocks from home. I'd walk down University Avenue, past the big car dealerships and other businesses, stopping along the way at one of the small restaurants to eat dinner.

Many of the used cars for sale had prices prominently written in white on their windshields. One day something had changed at one of the lots. Colorful pennants were flying, a huge balloon was tethered over the office, and quite a few folks were milling around the lot. All of the cars had the same price markings as before, but added above each was a different, much higher price, crossed out.

At a nearby cafe one evening, I overheard two car salesman from the area talking business. One of them said, "We get most of our business from hicks in the country. When they figure out that we've skinned 'em, they come back in a couple of years to turn the tables on us. Then we skin 'em again."

[kenberg]

I grew up in St. Paul. Al's was on University Avenue. Coping with used car dealers is a strengthening experience.

[PassedOut]

kenberg, on Dec 18 2008, 12:25 PM, said:

I grew up in St. Paul. Al's was on University Avenue. Coping with used car dealers is a strengthening experience.

For sure! That reminds me of another experience I had right there on University Avenue.

I was walking by a smaller used car lot and the salesman, Bob, was all alone. He called out to me, "Why are you walking, buddy?'

I told him, "I'm saving college money, won't spend any of it on a car."

"Won't hurt you to look, will it? Neither of us has anything else to do."

So I walk around the lot with Bob as he points out all the neat cars he has, talking a mile a minute. I'm kind of a talker too, so we spend some time. We get to the cheapest car in the lot, and he suggests a test drive.

"Sorry, but it would be pointless."

"Ah, get in, I'm paying for the gas."

I drive the car around the block, Bob in the passenger's seat. The car is terrible. Every time I step on the brake, it pulls sharply to the left.

"What did you think?" Bob asks.

"Good luck selling that thing."

Bob looks disappointed. "Tell you what, let's try this one over here."

This car costs three times as much. Compared to the one I just drove, it performs like a dream.

Bob says, "That's a lot more car, isn't it."

"Yep. If I were in the market for a car, which I'm not, that would be more like it."

Bob shivers. "Hmm. Getting cold out here. Let's sit down for a few minutes in the office. Got the heater on in there."

"Nah. Nice talking to you, but I'm going to walk home."

"Well, you can warm up for a few minutes first, and keep me company."

We go into the office and Bob leans back with a puzzled expression. "How come a young guy like you doesn't have wheels anyway? Every guy wants wheels."

"It's not that I don't like cars, it's that I need my money for college and I don't really need a car there."

"You can save your money for college and still have a car. You can pay a little bit every month. That's what everybody does," Bob explains. "In fact I'll give you the car you liked for half price, and here's what it'll cost you each month."

Bob gets out a pad of paper and does some long division. Math is my thing and I see he's done it wrong. The real payments would be quite a bit more than he claimed. I don't point that out, but just tell him I'm not in the market.

Bob gets a little testy. "I don't want to waste your time and I'm sure you don't want to waste mine!"

"That's right, Bob, time for me to go." I stand up and start to open the door.

"Aww, come on back here. I'll give you the good car for the same price as the first one you drove."

"No thanks, Bob, I'm really going."

"Well, okay then, but when you are in the market for a car, I'm always here!"