Quote:
Originally Posted by geoffwood
Discounts are a fools game and undermines credibility. Take Kohl's as an example. Slap a price on a product that is double what you ever expect to sell it for, and then offer 50% off. In the mean time if someone is crazy enough to pay full price then more fool them.
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I'd argue that the only difference between Kohl's and Apple in that respect is Apple doesn't offer it at 50% off.
The upshot is, however, that discounts are the main way retailers survive now. The RISK of that race to the bottom is there, but the current reality is that the largest and mot profitable retail companies in the world are discounters. (Like, say, Amazon?)
I think the audio program in that article (if it's the one I recall listening to) spoke of high-end retailers (like Saks 5th Ave) relying on discounting brands (Off 5th) to be competitive.