I worked for a company for two 4 month periods in which I discovered trade practices that can be somewhat questionable. We sold packaged steaks. All of our pricing stickers were on the shelves, below the products (never changed from the time I was there).
Every time a customer came in, we had our regular sales that were marked off regular price. With that said, whenever a customer came into the store, EVERYTHING was 20% off the white sticker price. It wasn't a weekly deal or anything. It was a constant thing they drove home to the customer. Their main beef was that you can lower that price as long as your gross margin is over 52%. The point I am making here is that, at no time, were these "regular prices" on the stickers enforced or sold at that price.
Even my boss commented on this, saying that any customer with a good lawyer could have a case against the company. Is this not a case of price inflation just to deceive the customer into thinking they're getting a great deal? Never once were these products sold at white sticker price, so that tells me that it's not legitimate and the 20% off is your real regular price.
Is this company playing with fire here?
Every time a customer came in, we had our regular sales that were marked off regular price. With that said, whenever a customer came into the store, EVERYTHING was 20% off the white sticker price. It wasn't a weekly deal or anything. It was a constant thing they drove home to the customer. Their main beef was that you can lower that price as long as your gross margin is over 52%. The point I am making here is that, at no time, were these "regular prices" on the stickers enforced or sold at that price.
Even my boss commented on this, saying that any customer with a good lawyer could have a case against the company. Is this not a case of price inflation just to deceive the customer into thinking they're getting a great deal? Never once were these products sold at white sticker price, so that tells me that it's not legitimate and the 20% off is your real regular price.
Is this company playing with fire here?