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I think I was surprised as anyone when JCPenney’s announced they were going to a coupon/discount-free based pricing model. In other words, they are doing away with the weekly coupons and just giving the customer the best value. They call it, “everyday low pricing”. Sound familiar?
This all leads me to wonder, “are coupons dying out?”
Here’s a few things I know.
- Folks love a bargain.
- They kind of like to know they got a better deal than the next person
- And, sales often lead to people buying more
So, what is with jcp’s model? Have they lost it?
According to jcp’s CEO Ron Johnson, he feels the concept will lead to customer’s trusting the department store over all the others. He states their intention of becoming folks’ “favorite store”.
Johnson has a pretty successful background: he helped to start Apple’s retail stores. Apple is another store that seems to be using this line of pricing too. They never offer coupons or discounts on their products. And, it doesn’t seem to hurt them one bit.
So maybe there is something to not discounting and just giving the customer a fair and value-based price off the get go? Maybe this is the wave of the future in retail?
I’m really interested to hear what you think about jcp’s strategy. Do you think it’ll work? Will you spend more or less at a store that doesn’t offer coupons?