JCPenney changing their pricing structure

[cschin4]

I don't know. I suppose it is a good idea for Penney's to try and make some changes. But, i usually go to penney's for sales. If they don't price at a low enough point, then they i think people will quit shopping there. I usually only go for the sales. I go to Walmart for low prices. So, we will see.

[bjl584]

If JCPenny's "everyday low prices" are higher than other similar retailers, then they are going to have a big problem. This strategy is a big gamble IMO.

[disneysteve]

Sorry DS & Kork

Guess (KNOW) I am the odd.....person out on the 19.99 = 19 in people's minds. In MY mind I have ALWAYS read 19.99 as $20 or any other comparable pricing - .88, .95......I ALWAYS round anything over .50 UP to the next full dollar.

I'm just like you. To me, $19.99 or $19.88 or $19.66 registers in my brain as $20. In fact, if it is a taxable item, I'll even add 10% just to come up with a round number of the cost.

Most people don't think that way, though. To them, $19.99 is $19.00.

The stores know this and really play into it. Look around at signs in the store. The 19 will be in nice big 60-point text and the .99 will be in superscript 10-point text. It is just like when a store has a big banner in their window that says, "All shoes on sale $29" but when you get up close you see it says, "and up" in tiny print.

[jpg7n16]

FWIW - I hated those commercials. Did you see em? With all the people yelling "NOOOOO!!"


Every time it came on, I just wanted to yell "NOOOOOOOOOOOOOO!!!!!!"


Guess we'll see, but I don't know if it'll work. I like knowing how much things were originally, and what I was able to scoop them up for. But I usually know what I want before I go in, and even still - I'll compare vs Amazon and eBay on my phone while I'm in store.

So what if JC Penny's straightforward pricing now shows something as $40.00? If I can find it for $25.50 + free shipping online, I can wait.

Besides is it really all that different?

From: What to Expect: J.C. Penney’s New Pricing Strategy - ABC News

“Customers will not pay literally a penny more than the true value of the product,” Johnson told the AP.

...

The company, based in Plano, Texas, will first offer its lowest or “best” prices on the first and third Fridays of every month.

So what you're saying is that the products are priced higher every other day of the month, and are offered at a big discount on every 1st and 3rd Friday? Should I be insulted??

From: What to Expect: J.C. Penney’s New Pricing Strategy - ABC News

Johnson said he believes customers are insulted by department stores’ usual strategy of offering items at high prices, then offering discounts.

[marvholly]

Really, it just depends on how your brain is wired. Typically, visual thinkers will look at it as $19, whereas analytical minds will identify it as $20. Based on what you say just now, I would venture a guess that you also keep detailed lists or calendars, you are almost always on-time, or always aware of the time, and you're not much of an artist.

The pricing generally works for enough of the population for it to be an effective strategy for retailers.

but I digress.........

Kork
Got me dead on.

DS

I do the SAME thing re: sales tax. In fact, generally if I am more than 0.25 off from the final bill I check the receopt because there is likely a mistake.

[kork13]

If they want to do it right, JCP should price everything to account for the sales tax... Honestly, everyone everywhere should have to do that. Here in Japan, there's a 5% consumption tax on everything, but they simply include it in the cost of the product. if it says 1000yen, you're gonna pay 1000yen. The retail cost is 953-ish, tax is 47, you pay 1000. I've never understood why the US can never simply incorporate taxes into the cost of an item. Aggravating, IMO.... particularly having grown up without sales tax -- when I went somewhere with it, I was terribly confused at why they were charging me extra.

[cschin4]

If there everyday prices are not low enough, than i doubt it will shop there much because often "everyday prices" are not all that great, that is why lots of us wait for sales.

[cschin4]

“Customers will not pay literally a penny more than the true value of the product,” Johnson told the AP.

Does anyone even believe that statement? And how could that statement even be true? It is was, then the company wouldn't make any money at all and be out of business. i call BS on that line.

[tulog]

"J.C Penney (JCP) is just getting started with their new makeover in retail. Take a look at this weeks ad in the Sunday Paper. The circular looks just like a magazine.

New J.C Penney (JCP) Ad Circular in Sunday Paper - Stocks To Buy Forum

J.C Penney hired Ron Johnson as their CEO. Ron Johnson was responsible for creating the Apple Stores you see all over the world with some input from Steve Jobs. By 2013, you will start to see mini stores like Martha Stewart Living inside J.C Penney Dept stores. This is going to be the new trend of the future. Target (TGT) recently announced they they will test a few Apple stores inside of Target."

[kv968]

There have been a number of studies looking at that .01 difference. Apparently it's actually quite significant. By using an odd cents value (.99, .95, .32, etc), people focus on the whole-dollar figure more than the extra little addition of a few cents. So $19.95 isn't about $20, it's $19 with a bit of meaningless change. Economy of scale takes over at that point, and all those "meaningless cents" become big profits.

Although its literally less than a penny, one place this works with great success is gas stations. Almost no one seems to notice that at the end of nearly ever gas price is the 9/10th. So instead of $1.40 its really $1.41.

Granted, its commonplace since every gas station does it and it is only a penny but as you said, those "meaninless cents" become profits.

[disneysteve]

There is a good article about this in TIME last week. Interesting fact was that last year, only 1% of sales at JCPenney were made at full retail price. There were 590 sales during the year. So basically nobody paid full price for anything. "Regular" price really meant nothing.

[marvholly]

Ok it is near 2 weeks now for this program.

Has anyone actually been to Penny and found any GOOD deals?

I would go but my only close by store is in a mall w/a major PITA parking lot design.

[dmontngrey]

I was there yesterday and they had marked all their ladies winter jackets down to $20. "Regular" price on the two I picked up was $200 each. I went there specifically looking for these $20 jackets after reading about them online. I'm very pleased with my purchase. Even my mother who works at JCP (hers is reopening in May - flooded by Hurricane Irene) thought I got a great deal on the jackets. In past years I got my winter jackets off the clearance racks when there were only a few left to choose from. Even with my mother's employee discount I paid more than $20. There were hundreds for me to choose from yesterday morning. At that price I'm sure they're quite picked over by now.

[Joan.of.the.Arch]

My usual daily winter attire includes a JCP mock turtleneck. I see that their catalog price is currently tagged "Best" and I think it is the same as I paid for them autumn 2010 on sale. Previously, I always watched the online ads for these shirts to go on sale, which they always did.

[marvholly]

Hit Penny’s on Tue to check out the new pricing structure. I am NOT impressed. Surprise!!! $24.99 is now $25. I peeled back several red labels to see.

I am even WAAAY less impressed by the quality of material and workmanship of the women’s clothing. Also it was nearly impossible to find clearance racks or items. They were mixed in w/everything else. Takes TOO long to find this stuff.

Prob will NOT shop there again. Suspect Penny is going the way of Sears – down the tubes.