How Much Money Do You Feel You Are Saving?
Many times companies advertise a sales promotion that entails spending over a certain amount of money and in return receiving free shipping for the order. This does two things for the customer; it allows them justify spending more money on clothing because they are saving money on shipping costs, and makes them feel like they have the upper hand in the transaction. However, this is not the case.
A company that utilizes such a technique is Forever21. For those who are unfamiliar with Forever21, it is a clothing store that provides clothing to both girls and boys at an extremely low price. I would not say the quality of the clothing is the best, but you can’t beat the price. In order to sell more of their products, Forever21 established the “free shipping” price quota of 75 dollars.
There are many times when customers end up with checkout prices close to the 75-dollar minimum. This would entice most buyers to find something else on the seemingly never-ending website that they like, so that they feel they could gain the reward of free shipping. While Forever21 is advertising that the customer is saving money from shipping if they are spending over 75 dollars, customers are saving no money. At the bottom line, customers aren’t saving money as Forever21 markets, they are just allocating it differently.
(by, Ashley Parker)