The Good Guy Discount and other deals

For most people who have spent any amount of time in a retail environment we have all seen them, that shopper who is going to get a discount, one way or another.  This type of person is the epitome of a consumer and helps drive the retail marketplace through their purchases.  Recently though, news outlets are reporting more and more on unsettling trends, from consumers wanting something for just being "a good guy" to Dateline running episodes on how to use pushy tactics to attain a deeper discount.

Just before the holiday season kicked into high gear Dateline NBC ran a story which through hidden camera examples explained to viewers how to stretch their dollars through shopping markdowns and utilizing coupons, even if they are expired.

The hidden camera team followed an undercover shopper into a department store, who presented expired coupons to a store clerk and when denied asked to see a manager. After some negotiating the manager granted the discount and excepted the expired coupons.

Retailers and services that also have done this are Toyota and other Car Dealerships, Car Washes, and Major Department stores.  And yes, excepting an expired coupon may seem like a small deed unlikely to effect much of anything, but what happens when these small discounts effect a vendors profit margin?

Another example of retailers lowering the cost of goods is given in a recent episode of This American Life, where a story is covered of a man who received a 25% discount on a pair of expensive shoes for being nothing more than "a good guy".

The customer, asked to store clerk if there was anything he could do to help lower the cost of the shoes in question.  And to make the sale, the store clerk obliged.

The rate at which a discount is given depends on the retailer's caliber; more elevated doors simply doe not grant sales staff the power to take such discounts at the register.

In contrast, less premium doors have had staff admit to granting a customer any discount within reason (up to 25% roughly) a department store known for running regular promotions has had staff readily admit to giving any discount necessary when trying to get product out the door in order to hit their challenging sales goals.

In the long run, clothing brands are facing a marketplace where consumers are being groomed to expect lower price points and bargains as the cost of production continues to rise.  It will be interesting to see the long term results of these behaviors and how it effects the flow of distribution through different retail channels.