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11-25-2008, 01:44 AM
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Virtual Class #11 – Understanding the Store Pricing Models
Virtual Class #11 – Understanding the Store Pricing Models
When you start couponing one of the first things you will realize if you haven’t already is that at Wal-Mart prices are generally constant. They rarely have sales and they occasionally have a ‘price drop’ but for the most part their prices remain the same. Stores like Kroger, Meijer, CVS and others have sales! So why is this important? Well if I told you that I haven’t set foot in Wal-Mart in over 3 months would you wonder why? Their ‘everyday low price’ isn’t all that low. Stores like Kroger and CVS want you to come into their stores, so they have sales. They will lure inside with great deals, and often those deals can be paired with a coupon making those items extremely cheap or free!!! Let’s talk about something called ‘High-Low Pricing’. The high price of an item is essentially the shelf price. If I walk into Kroger and buy an item off the shelf not on sale, I’m a retailers dream. Kroger’s shelf prices are generally higher than Wal-marts. This is common knowledge, and is one big reason Wal-mart is perceived to be the cheapest. BUT let’s say I’m paying attention. I see in Kroger’s ad that they are having a sale. I know from shopping at Wal-mart, that the sale price of that particular item is less than Wal-marts price. I’m doing well. I’m finding something cheaper at Kroger and I’m saving money!!! But wait, its gets even better. Kroger doubles coupons, Wal-Mart does not. (We will talk about this in another lesson) When I check out, I can get an item on sale at Kroger, cheaper than I can get it at Wal-Mart, AND because I have a coupon and it DOUBLES, I’m getting this item for almost nothing!!! Let’s take a look at a couple of examples. Let’s take Cheerios Wal-mart’s Everyday Low Price: $2.50 Kroger’s Shelf Price: $3.29 Walmart is Cheaper by $.79 Now let’s say Kroger has a Sale on Cheerios: Wal-mart’s Everyday Low Price: $2.50 Kroger’s Shelf Price: $2.25 Kroger is Cheaper by $.25 So let’s also add in a coupon and see what happens. Let’s repeat the example and say you have a coupon for $.50 off one box of cheerios. Wal-mart’s Everyday Low Price: $2.50 (Minus $.50 Coupon Savings) Final Price is: $2.00 Kroger’s Shelf Price: $3.29 (Minus $.50 Coupon Savings) (Minus $.50 BONUS DOUBLE Coupon Savings) Final Price is: $2.29 Walmart is still Cheaper by $.29 but its close! Let’s see what happens when you have a cheerios sale at Kroger. You still have your coupon for $.50 off one box of cheerios: Wal-mart’s Everyday Low Price: $2.50 (Minus $.50 Coupon Savings) Final Price is: $2.00 Kroger’s SALE Price: $2.25 (Minus $.50 Coupon Savings) (Minus $.50 BONUS DOUBLE Coupon Savings) Final Price is: $1.25 Kroger is still Cheaper by $.75 Even without the coupon, Kroger still beat Wal-marts price. But you can now see that combined with the power of doubling, Kroger temporary lower price, along with the coupon savings beats Wal-Mart’s everyday price substantially. If you had never used a coupon and had been paying the $3.29, your savings, when using a coupon and buying the item on sale, is roughly 62%!!! Imagine that savings across the board. Pricing methods are important to your overall strategy of saving money. If you’re a keen and aware shopper, you will be able to take advantage of sales. By using coupons on the store’s low price, you can get many items for free or extremely cheap! LESSON: Where should I shop, and is Wal-Mart always more expensive?? How do you take advantage of the stores pricing methods?? When there is a sale, is it always a sale? Can CVS be cheaper than Wal-mart and why? I’ll answer these questions in later posts….feel free to discuss and ask questions!!! If you’re interested in the concept of double coupons please click the link below. It will be covered in a virtual class soon: Double Coupons…and Why it’s So Confusing. - WeUseCoupons.com Last edited by MrCoupon; 02-16-2009 at 08:26 PM. 
    
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| The Following 10 Users Say Thank You to MrCoupon For This Useful Post: | ||
chicacheli (03-22-2009), Gertrude10 (10-25-2009), HGeiger (02-26-2009), imbulky (11-25-2008), mama of 4 (03-09-2009), MrsOcean (04-03-2009), natisha1971 (11-25-2008), rjamka6 (03-25-2009), sweetpea101506 (04-09-2009), TheGirl (12-29-2008) | ||
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11-25-2008, 07:42 AM
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Great information! Thank you!
   & new grandma to little Kenneth  !!I believe in Santa!! 
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11-25-2008, 10:09 AM
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Interesting..I never shop at Wal-mart because of this..
I only shop there if the store is out of an item and I price match - assuming it does not require a coupon to double My Coupons are my American Express Card - Don't leave home without them!  Admin For WUC 
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| The Following User Says Thank You to moonflower For This Useful Post: | ||
MrCoupon (11-25-2008) | ||
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03-22-2009, 12:20 PM
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More good information to have.
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03-22-2009, 02:29 PM
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I have never tried to learn about this because I don't know what stores here in Illinois double's coupons. I'm in the western burbs of Chicago anyone know? I"m by Jewel, Dominicks, Meijers, Woodmans.
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Tags |  |
| #11, class, models, pricing, store, understanding, virtual |
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