There are discounts galore now. It is a proven marketing strategy employed, more often than not, successfully to attract customers. Now the question is, if pre-Eid shopping is compulsively brisk, why should manufacturers or traders feel it necessary to lower prices on their products or commodities? Actually economic theory supports such price reduction during pre-festival time. Smaller profit margin more than makes up for the concession rate. With overall turnover getting many times more during this period than when business is sluggish, the total earning in most cases also outpaces that of the rest of the year.
However, lucrative offers are not confined to the two Eids only. Cell phone companies continue to pester their customers round the year. Short message service (SMS) rains down targeting helpless cell phone users to the point of driving them crazy. A message is repeated several times. Unless one is prompt enough to delete those messages, the likely scenario is to have no accommodation for a new -and perhaps a most important -message from someone. If this is not enough, a machine-generated call from a queer number will disturb them in weird hours. Then there are deadlines by which time those offers have to be availed. Additionally, a customer is requested to call a number for details.
Most often these offers prove illusive. For example, bonuses on recharge of certain amounts are rarely paid or in case it is done, there is a trick-a gap between the cup and the lips - so that those offers remain unavailable to most customers. When available, the period for enjoying the facility is very short.
Likewise, manufacturers-multinational companies in particular -have introduced a culture of 'free gifts'. Customers' attention is attracted by offering "Buy two, get one free". Then a reputed electronic company offers a smaller version free if its mega size is bought. Other offers include a host of small gadgets with each purchase of its pricey ones. One wonders if the ploy really clicks. Maybe, its target is the moneyed people who feel pampered by such offers. Their sense of self importance or even hubris is satisfied by the extra offers.
At the lower levels of society though, the free offers are confined to a tea spoon, a mug, a small packet of sugar and the likes. Do people fall for such free items none of which may prove not for immediate use? Maybe, some really do. But others find those offers suspect. The quality of such free gifts too is doubtful. There is nothing to be surprised, if some of the consumer items on offer are date expired. Well, one understands if a new company sells a product at a low promotional price before its demand is created in the market. But the realm of random discount and free gifts conjure up images, courtesy of colourful advertisements, that are far removed from the real world.
Some traders show a price tag far higher only for its discount offer. In reality, the customers are cheated. The original price was actually lower than the discounted one. The problem here is that costing is done without proper assessment under the monitoring and supervision of a highly efficient authority. Chaos reigns supreme here. Amid marketing anarchy though, a number of companies have reduced the prices of their items such as detergent powder and a few other toiletry items. Consumers are likely to appreciate the move.     Â
Are discounts a real price cut?
Neil Ray | Published: July 13, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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