For as long as I can remember, I have shopped at Wal-Mart, T.G.& Y. (before they sold off and closed down), Dollar General Store, and similar stores. Taking a trip to the mall to shop at Sears, J.C. Penny’s, and other stores there was a treat and still is.
Although, I do check out Sears, J.C. Penny’s, Kohl’s, and the stores that are more upscale than the previous stores. When I go into these stores, I check out their clearance racks. If I look hard enough, I can get their clothes on these racks for next to nothing.
Now all of a sudden with the economic state of the country, shopping on the cheap now has become chic with the upper crust. I found this out through an article on the CNN website. While the upper crust still have a disposable income, the article states, they are scaling down on their spending.
The article further states one of the people interviewed has quit window shopping on their way to work. Last I heard, window shopping isn’t what costs a shopper, it’s giving into the urge to go in to any store, whether it’s upscale or not, to make unnecessary buys.
Brett Wright, chief creative officer and cofounder of Uptown Magazine, stated in this article that he has seen a downslide of larger buys. The people he has been watching have been keeping their large buys, when made, under the radar.
Further reading what Mr. Wright had said in this article, he has mentioned, “‘Consumers are looking for value for their spending.'” All I can say to that thought is, that is something I have known all along from the people I know.
I know several successful corporate people and a few small business owners who have always done this type of spending. These folks that I have known for years have always looked for the best bargain before making large ticket buys or on anything else they buy for their daily use.
The “In a recession, cheap is chic” article it goes into further interviews with business owners who have made changes in their pricing to cater to their upscale clientele. I think this is a bit two-faced in their thinking.
Why do I think that? This type of cost cutting tactics to keep their upscale clientele happy is another marketing ploy just to keep those who can spend in their stores or on their goods in upscale stores. Rather than, keeping their costs nominal to everyone, they are leaving out whole groups of people by keeping the costs of goods at a price range that only the elite can afford. Therefore, they are loosing out on a whole different market of shoppers. Thus, creating a sales decline they could have avoided in such an economic recession.
By being able to satisfy the consumers at a reasonable price, designers and manufacturers of high end goods would find they wouldn’t have to take a very drastic cut on their merchandise to the point where they are making barely a few dollars over the cost of their goods.
One example of such price gouging is in this article. One woman posted on Twitter where she had found a pair of Cole Hahn shoes, which I have never heard of this brand or designer, for $20 which were originally priced at $180 at Marshall’s.
This type of nonsense is what I am talking about with designers and manufacturers. Yes, I realize they have to pay for the materials to make the products, pay employees to make the products, health care, utility bills, and all other things business. However, using common sense in manufacturing such items doesn’t seem to be in many of these businesses.
Many people don’t realize when buying high end designer name products, more than 50% of the cost of the product is for the designer name and not the product. This is all a marketing ploy to get consumers to buy over priced products they can buy at a lower price at the low-end to middle priced stores.
In a recession, cheap is chic