Monday, January 30, 2023

Retailers reveal how stores trick customers with “70% Discount” & False Year-End Sales

Social NewsRetailers reveal how stores trick customers with "70% Discount" & False Year-End...

Stores and brands all around the country are actively pushing their items at significantly discounted costs for the yearly year-end sale as 2022 draws to a close.

While many people are eager to indulge over the holidays, Kosmo noted that many are unaware that some department and retail stores deceitfully change the price tags on their ‘discounted products’ in order to trick customers.

These department and retail businesses use 70% off stickers as a marketing tactic to encourage customers to buy their merchandise at a “lower” price while simultaneously reducing their inventory.

Kosmo was informed by multiple store workers, nevertheless, that occasionally the discount offered is only a farce since the buyer actually pays the full amount and not the discounted price.

Retail workers claim that the majority of merchants and retailers adopt this strategy because they never genuinely cut the cost of their items by up to 70% in order to retain earnings.

Price-fixing strategies are widespread, particularly around the holidays and the festive season, according to Naim, a 31-year-old worker at a well-known shopping centre in Kuala Lumpur.

Before the discount was applied, retailers, according to Naim, would sell a product for more than its true selling price.

He continued by saying that after this is finished, the inflated price would be decreased, tricking customers into believing that these establishments are giving them a substantial discount.

“The truth is, if they want to give a discount, they’ll maybe only give around 20%,” he said.

The store worker also mentioned that by using the strategy, more consumers would be drawn to purchase the goods than when it is not used.

“Among the tactics used is by offering discounts of up to 70% and 80% while the price sold is the actual price,” he said.

He revealed that during “special sales,” where they often gathered old supplies from various locations, they would also offer outdated things.

“That’s why there are stocks that don’t have sizes or colours. All of them are old stock. They will manipulate the actual price by placing stickers or promotional offers to attract the attention of customers,” he said.

Ameera, a 35-year-old clothes salesperson in George Town, Penang, claimed her company would offer clients the highest price reductions, or “kaw-kaw” discounts, towards the conclusion of each year.

“There is no denying that there is some price manipulation, and I have been involved in it myself, such as putting a discount tag on a shirt that has no discount,” she admitted to Kosmo.

She continued by saying that for merchants, maintaining a profit and ensuring consumer satisfaction are their top priorities.

Ameera noted that some clothing is actually offered at a discounted price, therefore not all discounts are false.

“Clothes that have been stored for too long and are too old-fashioned may be discounted, but that is also up to the boss.”

In the meanwhile, a former salesperson named Nur Hazwani Md Rizal, 36, acknowledged that a few years ago, while working at a clothes and home furnishings retail business in Butterworth, Penang, she was a victim of a price tag fraud.

Hazwani claims that the technique is to make a phoney tag that is somewhat more expensive than the real one before announcing a large discount.

To mislead buyers, they would then put the real price tag over the false one after the discount has been made public.

The former salesperson said, “The costs of these things will increase by roughly RM5 or RM10 before a phoney discount is given.”

“This situation dragged on until I decided to resign because I didn’t want to conspire with the employer to cheat customers,” she said.

“Customers buy because they believe the item is inexpensive, but I am afraid to be honest with them. I’m worried that this case will worsen if customers find out.”

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