Who knew the powers-that-be at JC Penney were such risk-takers? In an effort to streamline and simplify their pricing, they will roll out a new sales strategy on February 1st. New CEO Ron Johnson (a former Apple exec) has decided to lower all Penney prices by at least 40%. Yep. That’s right. Down by a minimum of40% – permanently. The thinking is two-fold: to offer better everyday prices to its customers and to gently force consumers to decrease their habitual dependence on waiting for items to go “on sale.” We bet you’re wondering how exactly they’re going to accomplish this? Well, let us break it down for you. There are three integral steps:
- Every item will become a “sale item” as stated above, having its price reduced by 40% to be known simply as “Every Day” pricing
- Once month, select items will be tagged as “Monthly Value” items
- On the first and third Friday of each month, JC Penney will offer items at the “Best Price” – the deepest discount of them all
In addition, JC Penney will be changing their pricing to whole numbers i.e. $25 instead of $24.99, as well as using color codes to help customers quickly determine whether or not that marvy mustard cardi is a “Best Price” item (if so, it will have a blue tag, “Every Day” items – a red tag, and “Monthly Value” – a white tag).
What do you think of this new pricing model? Will you relish in the “Every Day” sale prices and run over every other Friday to check out the “Best Price” options? (The most genius part of this plan as it just so happens to coincide with payday.) Or is this no-sale sales strategy just confusing?