Higher end boxed pens are usually supplied with two price stickers. The RRP and a special price. We didn’t receive the special price stickers so put the pens out at full price. A month later when we realised we fixed this, we discovered that it didn’t matter. The pens are selling well at their RRP. A check of our sales team reveals that not one customer has queried the price. It turns out that no one nearby has our range so we are providing a service for which a premium appears to be accepted.
I am not suggesting that newsagents gouge on price. Rather that we understand our market position and take this into account on price. Oh, and just because a discount opportunity is available, it does not mean that we should always take it.
I wonder what the ACCC thinks about pen companies knowingly misleading the customers with a false RRP that is up to 4 times what it should be. If I was to have a sale and put my prices up just to discount back to normal prices I’m sure I would be in trouble. Again it makes customers distrusting of newsagents and our products, our customers know that they don’t have to pay whats on the tag because its so out of touch.