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Don’t Fall For “Yo-Yo” Pricing.

Comments Off on Don’t Fall For “Yo-Yo” Pricing.

Do you want a straight price or do you want a Yo-Yo discount price?

Before you rush out and buy your new kitchen from one of the large chain stores thinking you’ve got the bargain of the year just take a minute and read this article I found in The Daily Mail.

“Customers tricked by ‘yo-yo’ pricing on discount kitchens: Firms artificially inflate costs for short period to make their lower prices seem even cheaper.

  • Stores set artificially high prices on some products for short periods

  • This makes other items, such as kitchens, seem even cheaper

  • Price comparison website finds that four major firms use the pricing ploy

Big chains are using ‘yo-yo’ pricing to fool customers into thinking they are getting a bargain kitchen, an investigation shows.
The stores set artificially high prices for short periods in order to boast that their lower prices the rest of the time are cheap.
A price comparison website found that Homebase, Wickes, B&Q, and Magnet all use the ‘reference pricing’ ploy.

Yo Yo Kitchen Prices

 

Steve Collinge of kitchen-compare.com said: ‘Many consumers are naive about the industry practices and often are attracted by the high discounts.

‘The more cynical approach taken by some retailers is to “price establish” their kitchens at a higher price for the legally required 28 days and then run a high discount promotion – 60 per cent or more – for a period of up to six months. ‘It is clearly a dirty trick and something that consumers need to be aware of.’

Mr Collinge’s figures show that Magnet created a high benchmark price for its popular gloss kitchen in June by putting it up to £9,064 for one month and then up to £9,786 for one day on July 1. The price then came down during a series of promotions to as low as £4,448.

Homebase has a list price of £6,343 for one of its cream kitchens but it has not been sold at that price since April 1.
The price has ranged between £2,020 and £3,832, except in June, when it was £5,796.

Wickes raised the price of its New Jersey cream kitchen to £5,137 in June, before cutting it to £2,420 and then pushing it back up again in recent weeks.

B&Q admitted it had used the pricing strategy but said it would end the practice. ‘We have responded to customers who have said they want to choose the kitchen that best suits their home and their lifestyle, without feeling pressured into mistakes by time limited offers and deals,’ a spokesman said.

Homebase Store

In theory a product should have been at the higher price for at least 28 days, while the subsequent sale should not run for any longer than it was available at the higher price. However there are various get-out clauses and the rule is rarely enforced.

Magnet said: ‘We fully adhere to the industry guidelines surrounding pricing and promotion policies and run genuine offers to give consumers the best choice and value.’

Homebase said: ‘We always offer competitive prices and genuine promotions to customers, which adhere to legal guidelines.
‘We offer customers reassurance by price-matching any like-for-like kitchen, plus 10 per cent of the difference.’

Wickes did not respond to requests for a comment.””

Original Article By Sean Poulter for The Daily Mail

“70% Off Your Kitchen If You Buy Now”

Yo-Yo kitchen pricing is not a new practice and has been used by the larger kitchen suppliers for many years and every year a story such as the one above hits the headlines but still many home-owners buying a new fitted kitchen fall for it.

But I feel the practice of massive discounting (up to 75%) on kitchens is even more rife within the industry with companies such as Howdens, Wren and Betta Living over inflating their prices only to offer a massive discount to give you the impression that you are getting the kitchen deal of the century. We expect this type of selling from double glazing companies but are not prepared for it from kitchen companies. So what is the answer?

Buy Your Kitchen From a Local Kitchen Specialist.

The majority of kitchen companies in Leicester are small family run concerns that really want your business and rely on recommendations from happy clients. They will explain all the different options when it comes to kitchen doors, worktops, sinks, taps and appliances, in fact they will make every effort to meet all your requirements within your budget without resorting to the sharp practices mentioned in this article.

Don’t Be Influenced By Discounts and Sales.

Buying a kitchen is not like buying clothes. How many of us have brought an item of clothing just because it was in the sales? We didn’t really want or need it, we brought it because we thought we were getting a deal.

But unlike buying a new “T-Shirt” on a whim which you can put in the back of the wardrobe when you get fed up with it, a new kitchen has to work properly and last for many years.

Make sure you buy the door style that you REALLY want not the one that is on sale. Don’t settle for kitchen design and style that is on “Special Offer” after all you have to live with your new kitchen for a long time.

For a genuine price for the kitchen you want call us today 0n 07966 716284 after all you don’t want to fall for Yo-Yo pricing.

 

 

 

 

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