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Subject: 
KBToys discount strategy
Newsgroups: 
lugnet.market.theory
Date: 
Fri, 13 Dec 2002 19:31:05 GMT
Viewed: 
1351 times
  
KBToys recently introduced a marketing gimmick that allows 20% off future
purchases. Every $100 spent qualifies one for a 20% off coupon. The coupon
takes off 20% any future purchase, even if the items are already on sale.
The coupons never expire, and are good at the outlets as well as the regular
retail stores. There are additional qualifiers which I won't go into here.

KBToys retail stores usually mark LEGO above list, but often mark some older
sets or sets that aren't selling well, below list. Sometimes the outlets
have exceptionally good deals (although not as of late).

The surprise for me is that you qualify to receive a new coupon even if you
are using an old coupon to make a purchase. So, if you always purchase $100
or more of merchandise, after the first purchase, you'll never run out of
coupons.

Suddenly (at least for me), KBToys becomes a more interesting place to check
out. If they're running a 20% off all LEGO sale, it becomes a 36% off sale.
The Yoda sculptures priced at $90 are now priced at $72. Granted, one has to
be very choosy, but with the gimmick KBToys has competitive offerings.

So my question for the mavens in market.theory is why? If you were running a
retail store or chain of stores, would you give out a discount on a purchase
made with a discount?

Cary



Message has 3 Replies:
  Re: KBToys discount strategy
 
(...) Sure. The only time I buy clothes is when Robinson's-May has a sale and then has discount coupons on top of the discounts. Of course, some places may specifically deny the use of coupons on top of some discounted prices - it all depends on (...) (22 years ago, 13-Dec-02, to lugnet.market.theory)
  Re: KBToys discount strategy
 
(...) <snip> (...) Your mileage (or at least mine) may vary. When I took advantage of this a couple of weeks ago (having already gotton one coupon), I was explicitly informed that I wouldn't get a coupon for a purchase made with a coupon. Other (...) (22 years ago, 13-Dec-02, to lugnet.market.theory)
  Re: KBToys discount strategy
 
(...) Why? They get a steady customer volume. I have also noticed that the Target Visa (a decent deal actually) gives you credit for additional 10% off coupons for the purchase you made with a 10% off coupon. I also quickly realized the Target Visa (...) (22 years ago, 14-Dec-02, to lugnet.market.theory)

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