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(AP)   JCPenney "every day" pricing causes loss of customers...every day   (hosted.ap.org ) divider line
    More: Obvious, J.C. Penney, consumer researches, big year  
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3737 clicks; posted to Business » on 16 May 2012 at 5:37 AM (4 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-16 10:19:35 AM  
I think they still have reduced items, but only a few and the sale lasts for a full month.
 
2012-05-16 10:25:41 AM  
Jacques Penné just sounds over priced.
 
2012-05-16 10:28:48 AM  

Asa Phelps: When you jack up the base price, you increase the perceived quality of the item. This has been proven over and over again.

When you then discount from the high price, you increase the perceived cost/benefit ratio of purchasing the item.

If you just lower all the prices, the irrational, emotional creatures known as humans perceive the value as having decreased. Because we are stupid.


This may be the smartest thing I've heard all week. QFT.
 
2012-05-16 10:34:20 AM  
In other news, JC Penny is still in business (for now).

FTA: Ron Johnson, a former Apple Inc. executive who became Penney's CEO in November, acknowledged that the first quarter was "tougher than anticipated."

Well, there's your problem. You bought a CEO from a company who has successfully brainwashed their customers into thinking that paying twice as much for something with less features is an outstanding idea. That shiat don't fly everywhere.
 
2012-05-16 10:38:53 AM  
I have to wonder about people who buy things at department stores.... I worked at a Hecht's loooong ago and until shiat was marked down 50% odds were pretty good it was just being sold WAY over it's regular price. Jeans aren't worth $42.00 a pair. When they sell them "on sale" at $29.99 a pair, you're actually paying what should be the actual full price. Until stuff hits the clearance rack, you're usually not getting a bargain at all. Even then unless it hits 60% or more off, you're probably not getting much of a deal.

Unless you're a snobbish type who just HAS to have the "latest fashion of the season" all the time, just go to remainder stores. It's the same stuff at the price it should have been in the first place. And unless you're really oddly shaped it's not really any harder to find sizes.
 
2012-05-16 10:58:53 AM  
I have called for a Jihad on JCP Optical. Those people are idiots, liars, and unorganized.
 
2012-05-16 11:11:24 AM  

WhoIsWillo: They should just pull a Kohl's. Have everyday low prices, but call it a sale to get people into the store.

/ I go there because there's no pesky salespeople trying to get me to buy stuff I don't need.
// I did accidentally end up with a pair of Navy slacks this way, being colorblind.


Kohl's also adds a "You saved THIIIIIISS much" on each of their receipts. Last time I shopped there I saved $45 on a $20 dollar pair of pants. Sooo awesome.
 
2012-05-16 11:17:42 AM  
I worked in the marketing & advertising departments at Sears when they tried this "everyday pricing" strategy... over 20 years ago.

It failed miserably there, too. People like sales.
 
2012-05-16 11:25:19 AM  

ThaGravy: Darth_Lukecash: Take a gay guy. The fashion sense of a woman, the shopping temperament of a man.

I would suspect fashion advice from a gay guy would start with: "Don't buy shait from Penney's"


My cousin and his husband both love Penney's for some reason. And his husband is one of the most stereotypically homosexual human beings you will ever meet.
 
2012-05-16 11:26:14 AM  

Famous Thamas: WhoIsWillo: They should just pull a Kohl's. Have everyday low prices, but call it a sale to get people into the store.

/ I go there because there's no pesky salespeople trying to get me to buy stuff I don't need.
// I did accidentally end up with a pair of Navy slacks this way, being colorblind.

Kohl's also adds a "You saved THIIIIIISS much" on each of their receipts. Last time I shopped there I saved $45 on a $20 dollar pair of pants. Sooo awesome.


Is it even possible to pay the full retail price on anything at Kohl's? I think literally every product is "marked down" to some degree.
 
2012-05-16 11:39:38 AM  

devildog123: ThaGravy: Darth_Lukecash: Take a gay guy. The fashion sense of a woman, the shopping temperament of a man.

I would suspect fashion advice from a gay guy would start with: "Don't buy shait from Penney's"

My cousin and his husband both love Penney's for some reason. And his husband is one of the most stereotypically homosexual human beings you will ever meet.


If any of them are dads...then it is the st johns bay polos. they were 10 bucks for a long time. they finally went up to 12. my wife grabs me a new color or two every couple of months and i rotate out the ones that are starting to fade or get small holes in them.
 
2012-05-16 11:47:49 AM  

Mr_Fabulous: I worked in the marketing & advertising departments at Sears when they tried this "everyday pricing" strategy... over 20 years ago.

It failed miserably there, too. People like sales.


I think the ones who spend the most shop for sport.
 
2012-05-16 12:12:44 PM  

ChrisDe: Famous Thamas: WhoIsWillo: They should just pull a Kohl's. Have everyday low prices, but call it a sale to get people into the store.

/ I go there because there's no pesky salespeople trying to get me to buy stuff I don't need.
// I did accidentally end up with a pair of Navy slacks this way, being colorblind.

Kohl's also adds a "You saved THIIIIIISS much" on each of their receipts. Last time I shopped there I saved $45 on a $20 dollar pair of pants. Sooo awesome.

Is it even possible to pay the full retail price on anything at Kohl's? I think literally every product is "marked down" to some degree.


That's because everything at Kohls is overpriced to start. I also like how their register screen shows you purchases in light grey, the total in a slightly darker grey and the "You saved this much" larger and in red. I don't consider those savings because the shirts I bought were only worth $10 to start not the $30 that was listed as their regular price.
 
2012-05-16 12:37:20 PM  

SharkTrager: LiquidSky: Austinoftx: Since it was advertised as "microfiber" I was expecting something bulky and fluffy like my microfiber comforter, especially for $20 including $8 shipping.

My sympathies, but I have to be straight with you ... that's basically like buying denim jeans and expecting them to feel like cotton underwear, just because the're both made of cotton. How a material is used/woven totally changes the effect.

To make it worse, microfibre simply means small fibres. It's not even a single specific "thing" like cotton, it can be any of a zillion blends of polyester and nylon or other synthetics. As such it can be made to feel like just about anything.

It's probably best to just mentally translate "microfibre" into "synthetic" ... the word alone doesn't tell you jack about the properties of the material.

You thought a pillow case would be fluffy? Seriously?

Do you know what "micro" means?


He should totally make them into a pair of pants.
 
2012-05-16 12:40:31 PM  
I worked at Penneys for 6 years, which was 6 years too long.

The customers love sales. When I first heard that they were going to "no sales" pricing, my first thought was that this would lead to... well, no sales. And I was right. You would not believe how batshiat the average JCP customer was over coupons and sales.

We had NHL jerseys, regular price $150, on sale for 25% off 48 weeks of the year (ie $37.50 off). They only really sold during playoffs however. Then 4 random weeks of the year we would have a coupon event, $25 off anything; and we'd remove the sale prices on the jerseys so they were full retail. People would go nuts and buy them like crazy, because obviously $25 off was a lot better than $37.50 off. Who the hell knows. The point of the matter was that those things sold far better, at a higher price, if we sent out flyers with a stupid coupon every so often. Turns out that people respond very well to things like coupons, but don't have a farking clue about what the normal price of an item is. They pay more, and think they're getting a deal.

This is ultimately why "no sales" is doomed. People, by and large, are morons that are easily manipulated by a little bit of psychology.


/6 years of that crap turned me anti-capitalist.
//The claim that capitalism is the most efficient market mechanism only works if the populace is well informed
///in reality, the populace is generally dumber than a screen door on a battleship.
 
2012-05-16 12:53:40 PM  

jaylectricity: Has the "every day low prices" thing ever worked for anybody? Even Wal-Mart has to keep "rolling back prices" to keep people interested. And shiat is dirt cheap there.


We're wired to look for the sale because we feel like we're getting a bargain. For me it's almost a sport. Target and Wal-Mart are across the street from each other for me, but I much prefer shopping at Target. Partially its the ambiance, but I know that part of it is those organce "clearance" stickers at Target I'm always happier to pay $25 for something that's 50% off than I am to pay $25 for a comparable item at Wal-mart, partially because, in my mind at least the half-price $50 item is proabably better quality.

Now OTOH nothing pisses me off more than fake "sales" like those liquidation companies that take over failing electronics or book stores, jack all the prices up 50% and then offer a 20% off sale.
 
2012-05-16 12:57:32 PM  

Mr_Fabulous: I worked in the marketing & advertising departments at Sears when they tried this "everyday pricing" strategy... over 20 years ago.

It failed miserably there, too. People like sales.


American Airlines tried this 20 years ago (Sears CEO was on thier board of directors).

Failed miserably as well. People like the game of finding the cheapest seats on a flight.
 
2012-05-16 12:58:27 PM  

Bunnyhat: I've shopped at JCPenny's more this year than I did in the last 10. I never went before because I didn't keep track of what sales were happening when. I go now when I realize I need some clothing. I don't have to worry about getting raped on the price because I wasn't bringing in a coupon during the best sale time.



Sooooooo much this.

I don't really have as much time to spend shopping anymore and I certainly don't have time to be looking for coupons, clipping coupons, scouring the Sunday ads or the mail for coupons, etc. and if I need something I'm not going to sit around waiting till it's on sale. I probably spend more money that way, but it's probably a wash in the long run because I don't make as many impulse purchases.
 
2012-05-16 01:05:23 PM  
Maybe what they should have done is raise the price of everything to 20% over their target revenue for it, and then send everyone a 20% Off coupon once a week.

Like what Bed Bath & Beyond does.
 
2012-05-16 01:08:48 PM  
The things I love most at JCP are the Stafford wrinkle-free, stain-resistant dress shirts for $30. Those things are nigh-invulnerable.
 
2012-05-16 01:27:08 PM  

poot_rootbeer: Maybe what they should have done is raise the price of everything to 20% over their target revenue for it, and then send everyone a 20% Off coupon once a week.

Like what Bed Bath & Beyond does.


Like Michaels with it's 50% off any framing order coupon that is in every circular my wife gets from them. And we get crap in the mail every week. Just lower the damn original price by 50%.
 
2012-05-16 01:33:01 PM  
People like to feel like they are getting a bargain with coupons or sales and sticking it to the store. Offer an item at a low price (ie. its actual value) and people feel like they are just buying a cheap product.
 
2012-05-16 02:05:06 PM  

Babwa Wawa: People still shop at stores like this? Why?


I'm mostly a thrift store shopper (what with having once been brokeity-broke) but if you want slacks/jeans it can be a time saver. With tops, I can just hold something over my chest and if the edges touch bone I know it'll likely fit. WIth slacks & jeans, however, it's best to actually try them on.

Also, finding a good fit in jeans/pants when you're petite is difficult. Most thrift stores don't have a petit section. And the pants are usually so wedged in on the racks that even if you were willing to invest the time to sort through them all, going through them is a pain. Don't even get me started on inconsistancy in sizes. After that, most thrift stores don't have many changing rooms, either.

I love thrift stores, but if I need slacks or jeans, they're not a good option. I save a lot of time just hitting a cheap-ish regular store with a petit section and plenty of fitting rooms.

/Burlington Coat Factory is a decent, cheap option
 
2012-05-16 02:09:59 PM  
I only shop at Hills.

upload.wikimedia.org
 
2012-05-16 02:12:34 PM  
Penney's hasn't eliminated sales. They've just made them much more predictable. Nothing's ever marked up, and "everyday" prices are what used to be regular sale prices (i.e., the 25% off the NHL jerseys). Every month, some products go on sale, and those products are on sale all month long.

And for promotions, the "best" price (the lowest price they'll offer on it, they say) come in bi-monthly sales that start on the 1st and 3rd Thursday of each month (i.e., tomorrow) and last "until the goods are gone."

What they're not doing, yet, is communicating how much this works for benefit. They need to start advertising things that places like Kohl's and Sears just took off sale. "If you had a coupon and time to shop last weekend, you could have gotten this towel set for $14 at Kohl's. Today it will cost you $24. At JCPenney, it's $12 every day."

Or even $15 every day, if they want to go that way. "Is it worth being a slave to coupons and dropping your weekend plans to save $3, or to get the best everyday price at JCPenney?"

The catch? The everyday prices have to be really good. Oh, and they still need to get rid of the glitches (on their website right now, if you click the square "jcp" logo in the upper left of the page, you get a 404 error that's hard to get rid of).
 
2012-05-16 02:22:29 PM  
As a postscript: I really want to believe this strategy will succeed, but it will require a lot of customer education.

Example: One of Penney's month-long May sales items is this MetroKane Houdini wine aerator for $15. A quick look around online shows it selling for around $18 online, but Amazon's top result says you can buy it for $8.76.

The catch: It's from an Amazon third-party reseller, so even Amazon Prime members have to pay $4.99 shipping, raising the price to $13.75-not a huge discount for something that a local Penney's store might have in stock. And they are offering free online shipping to stores this month using code "JCSHIP" (it's on the top of most pages, not sure why it's not the default instead of requiring what one could call a "coupon").

But at first glance, $8.76 (which doesn't register as "$9" for most of us on first reading) seems like a great bargain when in the end it's just a small difference. It will be very depressing if this can't be made to work.
 
2012-05-16 02:28:27 PM  
I hope they keep their no sale pricing now. I just had kid #3 and had to stock up on clothes for him. JCP's pricing on Carter's layette stuff was cheaper than what Macy's had it for after their coupon/credit card discount. Cheaper than the Carter's outlet. I have bought more stuff for the kids there this year than I have in the past 20 years for myself/rest of the family.
 
2012-05-16 02:49:46 PM  

Buzzerguy: Penney's hasn't eliminated sales. They've just made them much more predictable. Nothing's ever marked up, and "everyday" prices are what used to be regular sale prices (i.e., the 25% off the NHL jerseys). Every month, some products go on sale, and those products are on sale all month long.

And for promotions, the "best" price (the lowest price they'll offer on it, they say) come in bi-monthly sales that start on the 1st and 3rd Thursday of each month (i.e., tomorrow) and last "until the goods are gone."

What they're not doing, yet, is communicating how much this works for benefit. They need to start advertising things that places like Kohl's and Sears just took off sale. "If you had a coupon and time to shop last weekend, you could have gotten this towel set for $14 at Kohl's. Today it will cost you $24. At JCPenney, it's $12 every day."

Or even $15 every day, if they want to go that way. "Is it worth being a slave to coupons and dropping your weekend plans to save $3, or to get the best everyday price at JCPenney?"

The catch? The everyday prices have to be really good. Oh, and they still need to get rid of the glitches (on their website right now, if you click the square "jcp" logo in the upper left of the page, you get a 404 error that's hard to get rid of).


This. They seemed to advertise as they changed over, but I can't recall seeing anything from them since. I've been in there once, bought a really nice dress shirt for 15 bucks. No complaints. I wasn't about to drive all over trying to beat that price by a dollar or two.
 
2012-05-16 02:53:41 PM  

WhoIsWillo: They should just pull a Kohl's. Have everyday low prices, but call it a sale to get people into the store.

/ I go there because there's no pesky salespeople trying to get me to buy stuff I don't need.
// I did accidentally end up with a pair of Navy slacks this way, being colorblind.


I'm convinced that Sleep Train keeps opening and closing one store somewhere so it can have a "grand opening" sale for all the time periods not covered by major holidays.
 
2012-05-16 05:13:54 PM  

HempHead: SharkTrager: LiquidSky: Austinoftx: Since it was advertised as "microfiber" I was expecting something bulky and fluffy like my microfiber comforter, especially for $20 including $8 shipping.

My sympathies, but I have to be straight with you ... that's basically like buying denim jeans and expecting them to feel like cotton underwear, just because the're both made of cotton. How a material is used/woven totally changes the effect.

To make it worse, microfibre simply means small fibres. It's not even a single specific "thing" like cotton, it can be any of a zillion blends of polyester and nylon or other synthetics. As such it can be made to feel like just about anything.

It's probably best to just mentally translate "microfibre" into "synthetic" ... the word alone doesn't tell you jack about the properties of the material.

You thought a pillow case would be fluffy? Seriously?

Do you know what "micro" means?

He should totally make them into a pair of pants.


Not fluffy enough.
 
2012-05-16 05:35:58 PM  
My sweetie and I both shop a JCP for their tall clothing. I'm 6'5 and though she's 4" shorter than me, her legs are longer. It's not the height of couture but the sleeves cover my wrist knuckles and she doesn't have to add 'brick-a-bract' to the legs to look presentable.
 
2012-05-16 06:46:03 PM  

Hand Banana: I only shop at Hills.

[upload.wikimedia.org image 596x408]


According to legend, little folks know, Hills is where the toys are.
 
2012-05-16 08:08:08 PM  

Mugato: Those obnoxious commercials couldn't have helped.


The commercials sucked. I expect better from Ellen.
 
2012-05-16 08:11:23 PM  
And I find the staff at Bloomingdales to be more helpful.
 
2012-05-16 10:06:09 PM  

meanmutton: /A computer consultant whose client is a toy manufacturer that sells toys via jcpenny.com


Yeah, that's not the name of their website.
 
2012-05-17 04:24:09 AM  
I farkING LOVE JC PENNEY.

I mainly shop for button up and suites, and the staff where I go has always been super friendly. Really cheap prices compared to other places (got a bunch of 7 dollar button ups that look good on their bi monthly sale). Easy math, do not need coupons. I couldn't be happier, I've bought 4 suites from them for a total of $400 before taxes, spent 35 dollars on each of them down the street to get them tailored, and they look nice.
 
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