Department stores love the lockstep discount model because for the most part, it is significantly less generous than a straight percentage discount and it requires that you, the shopper, put in more thought when purchasing. You all know the lockstep discount model: purchase "X" dollars worth of merchandise and get "Y" dollars off or "Y" dollars in the form of a gift card. Getting a gift card is worse than getting money off because the gift cards are usually only good for a certain (short) period of time and this forces you to come out-of-pocket right now. The picture below is from a recent sale.
This type of discount forces you to calculate your actual cost as you shop. For example, you end up spending the same amount of money ($224.99) whether your purchase is $249.99 or $274.99. Or you end up saving more money if your purchase was a penny more at $250.00 (and get $50 off) than $249.99 (and get only $25 off). Usually this induces you (or at least me) to buy more to hit the next discount level. I end up walking around like a zombie looking for a $5 item...which I never find, of course. The next time this type of sale comes around, don't be lazy and breakout your calculator to get the best deal!! You may just end up with a "bonus" shirt or dress.
3.07.2010
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