February 19, 2018
From the desk of Razvan Rogoz,
When I was a kid, I didn’t receive a lot of disposable income. Most of the clothes I’ve bought were from local stores or bazars. Yet, there was one store which offered some good discounts. Almost everything was 50 – 60 – 70% discounted. If you bought for $100, you would pay only $50.
So each time there was a major sale, I would buy from them. The problem was that the discounts were so big that it trained me to wait for them. It made no sense for me to purchase anything but the one weekend per month when it was discounted. Years later, I’ve realized that I wasn’t the only one who did this. This store was full during the sale period, empty during the rest so right now, the discounts are year long. They’ve killed their profit margin by giving too many discounts and training their marketplace to wait for them.