Target Frustrations

This is why B&N has two different prices on-line and in b&m stores.

B&M: they compete with Borders (who is having financial difficulties)
oneline: they compete with amazon.com

Essentially two different competitive models and therefore, two different pricing strategies. It will be interesting to see if it works or not -

The company I work is like this. Retail and online are managed by two different entities and pricing strategy is different. The one thing about where I work though is we match our online price instore if it is cheaper.
 
No use in having a price match program if you really don't want your customers to take advantage of it.
While that sounds good, it is probably not true. As a matter of fact, the more a retailer can ride the line - having a price match program, but having customers not use it - the better. Retailers don't make money off of loss-leaders. They make money when customers buy goods generally, not just at the clearance rack or on discount. Customers that drive the edge of the price match policies are more likely to be customers who just shop the loss-leaders, and less likely to be customers who pay full price (i.e., most profitable) for anything. So even if the price match policy does turn off a certain percentage of those customers, as long as the idea that the retailer matches prices attracts enough customers (because many figure that prices must be low if they're willing to price match so much), then having the policy as it is, and operating price matching as they do, makes the most sense.


Things have kind of backfired and a lot of consumers have just made this a "game" and for many they will just shop where it easy and who they get get the best deal from.
Absolutely on-target. A large portion of consumers have made things the way they are, by their purchasing behaviors, and now the retailers just have to deal with this "stinker" as best as they can. Eliminating it completely isn't the right answer, nor is allowing it to eat into profits any more than necessary.
I shop at Target because that is where I like to and will regardless of price.
You're one of the customers Target really wants.
 
Essentially two different competitive models and therefore, two different pricing strategies. It will be interesting to see if it works or not -
Let's hope it does work, because the alternative is to simply do away with B&M. Could you imagine shopping for clothing without ever being able to see it, anywhere, before buying it? Online retailers will always have less overhead than B&M. If we consumers continue to increasingly buy based on price, then online retailers will prevail, and B&M will have no choice but to go in one of two directions, either boutique ($$$$$) or out of business. Of course, it's already happened a lot. Will we one day end up with Main Street storefronts converted into warehouses, from which online orders are fulfilled for one specific online retailer - no showroom? While I don't think it will go to that extreme, the trend in that direction is very clear, and very strong, and every year we consumers lose more and more access to touch and feel the things we buy before we buy them. But how many of us are willing to pay enough extra for the same thing - enough to cover the additional overhead costs plus provide some profit for doing so - to buy from a B&M? Will we stop "shopping" B&M, just taking from the B&M store the insights we get from shopping, but making our purchases online?
 
Let's hope it does work, because the alternative is to simply do away with B&M. Could you imagine shopping for clothing without ever being able to see it, anywhere, before buying it? Online retailers will always have less overhead than B&M. If we consumers continue to increasingly buy based on price, then online retailers will prevail, and B&M will have no choice but to go in one of two directions, either boutique ($$$$$) or out of business. Of course, it's already happened a lot. Will we one day end up with Main Street storefronts converted into warehouses, from which online orders are fulfilled for one specific online retailer - no showroom? While I don't think it will go to that extreme, the trend in that direction is very clear, and very strong, and every year we consumers lose more and more access to touch and feel the things we buy before we buy them. But how many of us are willing to pay enough extra for the same thing - enough to cover the additional overhead costs plus provide some profit for doing so - to buy from a B&M? Will we stop "shopping" B&M, just taking from the B&M store the insights we get from shopping, but making our purchases online?


Lots of great points - this is one of the reasons I go out of my way to buy something from B&M stores that I'm considering - ie. B&N, Pottery Barn, Restoration Hardware, etc. If we don't support them with our wallets, they will be gone and we won't have the option anymore.

It is nice to be able to "touch and feel" the items first!
 



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